Richard Saunders, the chief executive of the Investment Management Association (IMA), has hailed the proposed National Pension Savings Scheme (NPSS) as the front-runner for the future of pension schemes in the eyes of smaller employers.
Speaking at the Association of Corporate Treasurers' Pensions conference yesterday (Wednesday, June 28), Mr Saunders commented:
"Of the options put on the table in the White Paper, the NPSS offers the best deal for small employers, whose participation is vital to its success. It offers employers a single point of contact in respect of all their staff - a one-stop shop for all their needs under the scheme.
"It also offers the clear option of a professionally-managed default fund in which employers and employees alike can have confidence," he continued.
"Thus, compared with other options, it minimises the administrative hassle which is the most off-putting factor for small businesses."
In addition to these factors, Mr Saunders noted that the NPSS would reduce the potential liability of smaller employers by providing them extra administrative protection but would also have increased chances of success over the other options due to the auto-enrolment structure.To read more about pensions, click here.
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