Magazine article Public Finance

Hutton Reveals Pension Saving Scheme Details

Magazine article Public Finance

Hutton Reveals Pension Saving Scheme Details

Article excerpt

Work and Pensions Secretary John Hutton this week published full details of the National Pension Savings Scheme, claiming that it could help up to 10 million people save for retirement.

As part of Hutton's white paper proposals, published on December 12, workers without current access to an occupational pension scheme will be automatically enrolled into the low-cost NPSS from 2012, with an option to withdraw.

'This simple but radical step will affect around 10 million employees in Britain, and will be vital in overcoming the barriers that prevent many people from saving,' Hutton claimed.

The authority that will oversee the NPSS will operate at arm's length from the Department for Work and Pensions will eventually co-ordinate how the savings cash is used by private fund managers.

Employees will pay 4% of their salary into personal accounts, with employers compelled to contribute 3% and a further 1% offered by the government through tax relief. …

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