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Lib Dems: Scrapping pot follows member was ‘incompetent’

Pension-pot-700.jpgThe Liberal Democrats have branded the government’s decision to delay a pot follows member pension system “incompetent”.

The Liberal Democrat spokesman for work and pensions Stephen Lloyd MP says the move by pensions minister Guy Opperman shows how “rudderless” the current government is on pensions policy.

Last October Opperman suggested the pot follows member initiative was back on the table as part of the government’s 2017 review into auto-enrolment.

However, in an answer to a written question in parliament this week, Opperman said auto-enrolment was a policy priority and it was not the right time to resurrect pot follows member.

The pot follows member idea championed by former Liberal Democrat pensions minister Steve Webb is meant to enable employees to take their pension pot with them from job to job.

It was originally supposed to be introduced in 2016, but has been delayed by changes of government and successive pension ministers.

Lloyd says: “Sadly when the Lib Dems left the government in 2015, this sensible and practical idea which would have made such a difference to so many people was scotched by the Tories.

“Truly I do not understand why, as a political party, they have a reputation for economic competence because scrapping pot follows member is incompetent.

“The more I see this government in action up close, the more I see how rudderless they are as they fail working people once again.”

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Comments

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  1. Robert Milligan 20th April 2018 at 2:54 pm

    Surly, all we have to do is change the rules on Auto Enrolment, simply cannel the whole Auto Enrolment program. Now from 1988 most Personal Pensions allow or could be made to facilitate both Employer and Employee contributions, so all we have to do is make it “compulsory” for Employers to fund an individuals Pension should the individual want to fund one, and as such the employer would have to match it up to 3% of salary. This would require Regulated Advice on all pension contributions, Unlike Auto Enrolment, where the individual client has been so far treated as a Mushroom. A there we have it, a Pot that follows the client, 100%. Simples!!! and I am not just a meerkat.

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