For immediate release: Monday 11 September 2006

PROPOSED NPSS OFFERS THE BEST DEAL ALL ROUND
IMA response to Pensions White Paper

The proposed National Pensions Savings Scheme (NPSS) is the best model for meeting the Government’s objective of creating a simple pensions scheme for those who are currently not saving.  In its response to the Government’s White Paper, “Security in retirement: towards a new pensions system” the Investment Management Association (IMA) highlights the simplicity of the NPSS model for employers and savers alike. 

Employers will be protected from having to make decisions about provider choice and will simply have to focus on the transmission of contributions.  Savers who do not wish to exercise choice will have access to a fully diversified default fund, managed professionally and overseen by a board operating in their best interests.

The challenge for Government will be to ensure that the Scheme retains its objective of focussing on helping those who do not have their own pension savings.  It would be damaging for Government, savers and the industry alike if the Scheme is allowed to become the dominant vehicle for long-term savings.

Richard Saunders, Chief Executive of IMA commented:

“ A well targeted and independently managed NPSS will give everyone – Government, employers and employees alike – the best deal and allow the Government to meet its goal of increasing levels of personal saving for retirement amongst those who are currently not saving enough.  The majority will need a simple default option capable of generating confidence and offering high quality asset management to a whole new generation of savers.”

A copy of IMA’s response to the White Paper, “Security in retirement: towards a new pensions system” is attached. 

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For further information, please contact:
Mona Patel, Head of Communications, IMA, 020 7831 0898

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