17 March 2010
The Personal Accounts Delivery Authority (PADA) says that it is
impossible to say how long the 2 per cent charge on National
Employment Savings Trust (NEST) contributions will last for.
Chief Executive Tim Jones said the terms of the government's
loan to meet the costs of establishing NEST were still a "work in
progress" and he did not know how long new contributions would face
a 2 per cent charge.
Mr Jones said: "The secretary of state, representing the
taxpayer, is the lender and the trustees of NEST Corporation will
be acting under trust law in the best interests of members. The
secretary of state and the NEST trustees will have a conversation
about this loan agreement, which we need to agree the detail of by
this summer. That agreement will set out the terms of the deal - it
is still a work in progress. It is impossible to say actually how
long it will last."
Mr Jones also admitted it was unknown how big the loan would
actually be and that NEST Corporation - the body which will run the
scheme and replace PADA - would not borrow more than it absolutely
had to.
