Speaking at a National Association of Pension Funds conference in Manchester yesterday, Hutton set out his proposals for a trust-based occupational pensions scheme run by trustees, who will set the strategic direction for the scheme including the collection of contributions, the investment of assets and payment of benefits.
Hutton said: “Personal accounts will be the biggest step forward for workers seeking to build up a pension since National Insurance was introduced in the 1940s.
“But if we are to make them a success for the millions of people who currently aren’t saving for a pension, we must put in place measures to ensure they have the interests of future members at their heart.”
The Government also announced it would be establishing a members’ panel to ensure that their views were taken into account by the trustees running the scheme, into which employees across the UK will be enrolled when they are introduced in 2012.
Hutton said: “The panel could nominate a proportion of the trustees and would be consulted by trustees on key decisions, providing them with access to the views of members, and stronger sense of collective ownership.
“Given the scale of personal accounts, I believe such an approach could be absolutely critical to the success of the scheme and increasing confidence across the whole pensions industry.”