The Government should establish an independent body similar to the monetary policy committee to ensure continuity in pension policy, according to the Investment & Life Assurance Group.
The trade body says there is a clear need for an apolitical committee to act as guardian of retirement provision, in the face of changing Governments and even more frequent Cabinet reshuffles.
Ilag says Governments cannot seem to agree on the way forward despite pensions being a long-term issue. It suggests the committee could fall under the umbrella of the Cabinet Office or Government Actuary's Department. It would operate along the lines of the MPC, which decides interest rates under the auspices of the Bank of England.
The recommendation comes in a paper on retirement provision, Avoiding Poverty in Old Age, which suggests a number of changes to Government policy. It also calls on the Government to simplify pension policy, saying there is so much overlap and confusion in occupational and personal pensions that it is virtually impossible for an individual to decide how much they are entitled to.
Pensions committee chairman and Hawkesbury Actuarial Services principal Chris Mapp says: “It would be useful to have a guardian body to ensure some continuity in long-term planning so we do not continue to lurch from one set of pension policies to another.”