15 March 2012
The House of Commons Work & Pensions Select Committee have
today published the findings from their inquiry into automatic
enrolment into workplace pensions and the National Employment
Savings Trust (NEST).
The main points of their recommendations are:
- The cap on annual contributions and ban on incoming transfers
into NEST should be removed as a matter of urgency, if state rules
- The Government should act quickly to introduce a simpler,
flat-rate state pension to remove any disincentive to save caused
by means testing.
- Pension providers should show charges clearly and transparently
and there should be a 'price comparison' website for pension
products set up, similar to those for some insurance products.
The committee does not support calls for smaller employers to be
exempt from the requirement to automatically enrol their workers
into workplace pensions.