IMA chief executive Richard Saunders told the summit that the debate over means testing and the structure of the NPSS was merely a distraction and the focus should be on creat-ing a high-quality default fund.Saunders told delegates: “People who are talking about the structure of means testing in 2050 are wasting their time. We have something on the table now that is the equivalent of buy one get one free.” He said the industry should stop bickering over the exact structure of the NPSS and argued that the focus should be on creating a default fund for the majority of savers who do not have the knowledge or will to make their own choices. He said: “We need a good default fund as 90 per cent of people will not make any choice.” Saunders said the simplicity of the system and the co-operation of employers were essential for the success of NPSS. He reiterated plans outlined in the IMA’s response to the Pensions White Paper to build on the Government IT infrastructure used to collect National Insurance to administrate NPSS and collect contributions. He said employers could aggregate the NPSS data with payroll data and suggested sending out free payroll software to employers to link up with the central administration system.MAIN POINTS l Prioritise good default system l keep fund management separate from adminis-tration of NPSS l IT for NPSS admin should build on Government National Insurance system l No room for individual advice l Increase focus on decumulation. Savers in NPSS should not be channelled into annuities as they end up paying for the rich
The European Parliament committee investigating the Equitable Life crisis has warned policyholders that there will be no “pot of gold” for them at the end of their inquiry. The committee said the enquiry is more an opportunity to explain what happened to policyholders and scrutinise legislation and propose recommendations to ensure such a scenario does […]
The FSA has publicly censured GD Tancred Financial Services Limited for failing to clearly outline the risks of income withdrawal to customers with pension pots of less than £100,000.
NPSS savers should not be forced to subsidise the rich by being herded into annuities, says IMA chief executive Richard Saunders. Speaking at the Money Marketing/Cicero pension summit in London last week, Saunders argued that low-income NPSS savers with lower life expectancy will end up paying for the retirement incomes of the rich if pushed […]
Self-investment of protected rights funds could persuade many to contract out
Jelf Employee Benefits assesses key trends within the international private medical insurance provision of organisations with employees in Singapore. Benefit structure, cost management and healthcare facilities are examined and key considerations are highlighted. This edition will be of particular interest to global human resource directors and benefit managers with local and expatriate populations in Singapore.
- Top trends
- Top trends
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