For immediate release: Tuesday 12 December 2006

IMA WELCOMES HUTTON'S REFORMS AS BEST CHOICE  FOR LOW COST PENSION PROVISION

The Investment Management Association (IMA) has welcomed the announcement in today's White Paper from the Government that it is to adopt the Turner Commission's centrally administered model for the proposed system of personal accounts.

Richard Saunders, Chief Executive of the IMA, commented:

"The IMA has argued throughout that the Turner model stood a much better chance of delivering a successful personal accounts system than any of the alternatives that were put forward.  We are pleased therefore that the Government has today accepted that advice.

"The centrally administered model works best for small employers by providing a single point of contact for them and the minimum of red tape.  It gives investors a simple, low cost, but professionally managed default option, overseen by an independent Board whose duty is to act in their interests.  And it enables the expertise of the financial services industry to be brought to bear on the management of personal accounts.

"These first key decisions mark the most radical reform of pensions in a generation.  Further decisions will be needed over the coming months to ensure a system that will work smoothly and will sit comfortably with existing provision.  We look forward to working with the Government to that end."

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

Out of hours contact:
Sally Biggs, Partner, Polhill Communications, 07961 463864
Despina Constantinides, Partner, Polhill Communications, 07801 337677