View more on these topics

Board of trustees will run personal accounts

Work and Pensions Secretary John Hutton says that appointing a board of trustees to run personal accounts will be absolutely critical if the scheme is to be a success.

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.”


Recommended

Aegon’s 5 for Life on Barclays’ panel

Aegon’s 5 for Life annuity product has been added to Barclays’ select choice multi-tie panel, giving its 900 advisers access to guaranteed income throughout retirement.

Foxtons and Alexander Hall sold to BC Partners

Estate agent Foxtons, and its mortgage broker Alexander Hall, has been sold for £390m to private equity group BC Partners.Foxtons founder and owner Jon Hunt started the business 26 yers ago in an office in Notting Hill. Hunt will gain an expected windfall of more than £350m from his estimted 90 per cent share of […]

Price helped shape career

As one of the female IFAs who benefited from the approach taken at Fiona Price & Partners before its untimely demise at the hands of Destini/Thinc, I wish to respond to Christina Skinner’s letter. Prior to joining Fiona’s London practice in 2003, I possessed three university degrees (a BA, a master’s degree in philosophy and […]

Parliamentary Ombudsman’s Equitable report delayed again

The Parliamentary Ombudsman has announced a further delay to its investigation into the prudential regulation of Equitable Life.In a letter sent to MPs, PO Ann Abraham says due to the fact that the Government Actuary’s Department, the Treasury and FSA have sent her a joint 500 page response to her draft report, her final report […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment