For immediate release: Monday 17 July 2006 

IMA COMMENTS AT DWP PENSIONS SUMMIT

At today’s Department for Work and Pensions summit on pension reform, Richard Saunders, Chief Executive of the IMA outlined three key points which he believed were essential to the successful introduction of a system of personal accounts.

First, Mr. Saunders emphasised that the National Pensions Saving Scheme (NPSS) would need an independent board, accountable to Parliament, not only to ensure full separation from the Government, but also to allow investment decisions to be taken by experienced investment professionals from the private sector.

Second, with 80-90% of people in occupational DC schemes currently choosing the default option, it would be essential to ensure a good default fund with responsibility for design and asset allocation in the hands of the NPSS board.

Finally, Mr. Saunders argued that the administration of the NPSS should be a single, central platform, separate from investment management, providing a single point of contact for both employers and employees, hence providing the simplicity that is essential to making the scheme a success.

Mr Saunders commented:

“Statutory auto-enrolment will create a completely new set of obligations for employers, employees and Government.  The way to manage those most effectively is through robust governance structures and professional oversight of the money of those who will not feel able to make investment choices on their own. The NPSS continues to offer the best hope for achieving that.”

-Ends-

Notes to editors:
1. IMA has produced a Parliamentary Briefing entitled ‘The Pensions White Paper – Making personal accounts a reality’ which provides further information. A copy is attached.

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

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089 332