Legal & General pensions policy director Adrian Boulding says he is “hugely encouraged” by the Government’s commitment to solving the issues around group personal pensions in relation to personal accounts.
Boulding says he has had personal assurances from Pensions Minister James Purnell that the issue will be solved by exempting employers with GPPs from entering personal accounts as long as they are as good or better than the scheme.
The DWP’s response to the White Paper released today confirms that the Government intends to minimise the burden on employers by implementing a simple exempt scheme test for occupational schemes, including hybrid schemes.
Boulding says: “The Government is committed to solving the issue and I am hugely encouraged by that. I am convinced that an employer with a GPP is going to be exempted from personal accounts. This is great news because that is the product of choice that IFAs are selling today.”