Magazine article Public Finance

National Pension Scheme 'Favoured by DWP'

Magazine article Public Finance

National Pension Scheme 'Favoured by DWP'

Article excerpt

The Department for Work and Pensions has launched a market research campaign to gauge employers' attitudes towards a National Pension Savings Scheme.

Public Finance has discovered that hundreds of large employers have been approached for their thoughts on Lord Turner's suggested NPSS, with the department paying less attention to the alternative models proposed by the financial services industry.

Work and Pensions secretary John Hutton this week told a pensions conference that 'Lord Turner s scheme still remains the one to beat,' indicating for the first time that his white paper this spring could strongly favour the NPSS model.

Turner's Pension Commission last year recommended establishing a low-cost national retirement scheme that employees would be automatically enrolled in and employers would be compelled to contribute to (around 3% of staff salaries).

Turner estimated that the cost of administering his scheme could be as low as 0.3% - far lower than alternatives proposed by the likes of the National Association of Pension Funds and Association of British Insurers.

The DWP-commissioned research is being conducted by independent firm BMRB and has focused heavily on employers' willingness to contribute to an NPSS. …

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