 Printable version
|
 E-mail this to a friend
|
Delivery authority maps out progress
The personal accounts delivery authority (PADA) has published its first annual report, highlighting the key steps taken towards setting up one of the world's largest occupational pension saving schemes.
The delivery authority outlined progress to date towards advising on and, pending legislation currently before parliament, ultimately setting up the new personal accounts scheme. The scheme is expected to have between four and seven million members, with up to £200 billion of assets under management by 2040.
Milestones in the delivery authority's first year of operating included:
* supporting the passage of the Pensions Bill currently being debated in Parliament;
* a major planning exercise to ensure the delivery authority is well placed to introduce personal accounts in line with the Government's timetable for the onset of employer duties in 2012;
* creation of a Board with a good range of relevant experience and knowledge;
* acquiring premises;
* building up a workforce - currently numbering 182 staff members across three sites; a mix of PADA employees, DWP secondees, interims and consultants;
* establishing relationships with key stakeholders;
* beginning to devise options for and consult on key elements of scheme design, with a discussion paper and formal consultation already completed into possible charging structures for the future scheme; and
* setting up a strategic research and customer insight
programme.
According to chief executive Tim Jones, the
delivery authority has developed rapidly as an organisation in its
first year.
"I believe that we have built a strong base in the past year. The challenge will be to build on this, and to take forward the introduction of personal accounts in time for the onset of employer duties in 2012,"
Tim Jones said.
Procurement for services relating to the scheme administration is due to start early next year, with other services to follow.
- ENDS -
For further information please contact:
Heather Tilston or
Clive Bull on 020 7940 8582/3
Download a copy of the annual
report from the delivery authority's website: http://www.padeliveryauthority.org.uk
Key facts about pension reform and personal accounts
The
latest population projections suggest that the number of people
aged 65 and over will almost double by 2055. The Department for
Work and Pensions estimates that around seven million people are
not saving enough to deliver the pension income they are likely to
want, or expect, in retirement.
In its 2005 report to Government, the Pensions Commission called for wider, fairer pensions coverage. It also identified automatic enrolment into a workplace pension scheme and employer contributions as key factors in effectively tackling under-saving.
In response to the Pensions Commission's recommendations, the Government is implementing an integrated package of reforms.
Pension reform
The Pensions Act 2007 reformed State pensions
and raised the State pension age. It also set up the personal
accounts delivery authority in an advisory role. The current
Pensions Bill will, on Royal Assent, build on these reforms.
The current Pensions Bill introduces a duty on employers to automatically enrol employees into a qualifying workplace pension scheme and, as a minimum, to make a 3 per cent contribution on a band of qualifying earnings. Personal accounts will be one of the qualifying schemes.
About us
The personal accounts delivery authority is a
non-departmental public body (NDPB), established in 2007. The
authority is currently advising the DWP on the operational and
commercial aspects of policy and preparing for implementation. It
will move into implementation mode following Royal Assent of the
current Pensions Bill.
Personal accounts will be a trust-based occupational pension scheme, run by a trustee corporation and independent of government. It will be a qualifying scheme under the Government's reforms and is intended to complement existing workplace pension provision.
.gif)
