Government urged to confirm pensions reforms

08 January 2008 / by None
The government's latest draft of the pensions bill could leave a number of companies unclear about their responsibilities under the new reforms, it has been claimed.

Simon Fraser, president of Institutional Business at Fidelity International, said that although the pensions bill aims to provide people with better savings in retirement, the second reading highlighted areas which continue to be "unaddressed".

The government has set employer contributions to three per cent of gross earnings, yet this has not be made "explicit" in the bill, Mr Fraser claimed.

This could potentially leave firms "unsure of their future responsibilities" and may impact upon their plans for the introduction of the reforms, he stated.

Additionally, the expert suggested that comments made by the chief executive of the Personal Accounts Delivery Authority indicated that the reforms could be delayed.

"If anything, this underlines that individuals and companies should not wait before putting retirement planning in place," he remarked.

Earlier this week, Joanne Segars, chief executive of the National Association of Pension Funds, said that the government ought to use the pensions bill to "bolster" existing workplace pensions provision.

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