14 August 2009
Tim Jones, the chief executive of the Personal Accounts Delivery
Authority (PADA), has said that personal accounts will complement
and not replace existing pension provision. Mr Jones was speaking
to Professional Pensions in the first of a series of monthly
columns.
He said PADA is not attempting to take over the pensions world
but rather is committed to structuring the scheme that to
complement but not replace existing provision. The aim was to plug
gaps in existing provision with millions of people not currently
eligible for some kind of occupational scheme, many of these being
lower paid workers.
He said: "Employers choose which pension scheme, or schemes,
they want to use to discharge their new duties come 2012."
Citing that many private providers do not bother with small
employers due to small profit margins he said "There is therefore a
clear need for a low charge, universally accessible pension scheme
for low to median earners."
"Our aim is to help facilitate a culture of pension saving among
a part of the population that has not previously been engaged and
to allow people to take some responsibility for providing for a
more comfortable life in retirement to build on the basic
foundation the state will provide."
