For immediate release: Wednesday 28 June 2006

NPSS - “THE BEST DEAL FOR SMALL EMPLOYERS”

Speaking today at the Association of Corporate Treasurers’ Pensions Conference on the issue of a National Pension Savings Scheme, Richard Saunders, Chief Executive of the IMA said:

“Of the options put on the table in the White Paper, the National Pensions Saving Scheme offers the best deal for the 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.  Thus, compared with other options, it minimises the administrative hassle which is the most off-putting factor for small businesses.''

Mr Saunders, went on to say:

“It also means that small employers need not fear being in the firing line if things go wrong.  The existence of clear default arrangements avoids any question of employers having to make choices of providers or funds for their staff, and any question of future liability.  The responsibility for ensuring proper investment of members’ assets would lie with the Scheme’s independent Board.

Auto-enrolment requires sustained levels of participation if it is to succeed.  That means retaining the confidence of both employers and employees.  The NPSS offers the best chance of delivering that.”

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA  07834 089332