View more on these topics

Pada chief points to basic earnings’ option

Personal Accounts Delivery Authority chief executive Tim Jones has revealed that personal accounts may offer a basic pay option rather than forcing firms to use total earnings to calculate pension contributions.

Money Marketing’s Time to Get Personal campaign has been pushing for the Government to lift the admin burden on employers with quality occupational schemes in place to prevent mass levelling down when personal accounts come into operation in 2012.

Speaking at the Tisa Retirement Savings Challenge conference on board the HQS Wellington last week, Jones said that companies which choose the basic pay option would still have to ensure that minimum contributions were reached.

He said: “Qualifying earnings need not be the only way personal accounts offer a product. We may well offer a basic pay product with some checks against your adherence to the minimum you have got to put in but there is nothing to stop a scheme offering a basic pay product.”

Legal & General wealth policy director Adrian Boulding says that Jones may be reacting to moves by insurance firms to introduce a similar option for group personal pensions.

He says: “I think that Tim has woken up to the fact that us and other insurers will be offering this catch-up option for our group personal pensions because most existing schemes use basic pay.

“He is reacting to that and will copy it by the sounds of it because personal accounts will be competing with the private sector.”

But Standard Life head of pension policy John Lawson says that employers will have a considerable admin burden, even if they choose the basic pay option.

Jones said Pada would start a tender process with potential scheme administrators in January, which would take “the thick end of 18 months”.

He is believed to be in close talks with half a dozen possible partners.

Recommended

Positive Solutions gets IFAs online

Positive Solutions has launched an extranet service to help IFA partners create personalised websites for their firms. The service will allow IFAs to have an internet presence and point of contact with their clients and colleagues.

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. qWu7ru kygdzmipveap, [url=http://atqeoovyncks.com/]atqeoovyncks[/url], [link=http://ymbrcfdwwxah.com/]ymbrcfdwwxah[/link], http://mctqdyeptlot.com/

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com