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Green Paper will not review pension credit

The pension credit and the interface between state and private pensions will not be reviewed in the pensions Green Paper, Downing Street economic adviser Derek Scott has told Money Marketing.

Scott, the Prime Minister&#39s personal economic adviser, says the Government has no appetite for a rethink on the pension credit which is due to be introduced next autumn.

But pension policy adviser Dr Ros Altmann has branded the Government&#39s current position as dishonest, saying the credit needs to go or people will misbuy retirement products with the state&#39s blessing.

Providers and IFAs have called for the Government to bring the issue of pension credit under review, arguing that it makes it impossible to advise many people on low incomes whether to save into a pension, but industry sources fear it is unlikely the Government wants to undermine a flagship policy that has not yet even come into force.

Scott says: “Tony Blair is personally aware of and interested in pension issues. But it is not likely that there is the mood in the Government for a change on pensions credit at this time.”

Altmann says: “There are certain parts of the Government that cannot admit that what has been done needs to be changed. People in power are not telling the truth. It is absolutely not true to say that with pension credit it pays to save. The pension credit will have to change and it would be better to say now that it won&#39t be here for ever.”

Scottish Life head of communications Alasdair Buchanan says: “If they are going to leave the pension credit in place, the Government needs to make it clear that,for many, saving in a stakeholder pension is not a sensible thing to do.”

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Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.

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