ABI endorses work and pensions select committee’s concern over govt’s pensions proposals
The Work and Pensions Select Committee’s Report on Personal Accounts makes clear that a lot more work needs to be done by the Government on its proposals for Personal Accounts if they are to be a success.
Stephen Haddrill, the ABI’s Director General, said:
“The Select Committee has rightly highlighted key areas in the Government’s proposals which need to be changed or clarified as soon as possible if our shared objective of more retirement saving is to be achieved.”
The Committee agreed with the insurance industry on the need for clarification of several key points:
. The Government must be transparent about the costs of Personal Accounts. The Report (page 82, paragraph 18) states: “the Government should be more open about its modelling and cost estimates.”
. The Government must “clarify its definition of the Personal Accounts target market in terms of categories of people and income levels” (page 80, paragraph 4).
. The Government must “spell out its plans for governance of the Personal Accounts Board..in further detail.” (page 82, paragraph 15)
. The Government “should consider how best to promote saving before 2012” (page 82, paragraph 13).
. The Government “should set out its planned regulatory framework for the Personal Accounts Board as soon as possible” (page 82, paragraph 17).
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