The National Association of Pension Funds (NAPF) has welcomed the Government’s call for evidence today (Thurs) into quality standards in workplace defined contribution pension schemes.
Helen Forrest, Head of Policy and Advocacy at NAPF said:
“DC pensions are the future and if auto-enrolment is to succeed people need to be able to trust that they are of a good standard.
“We remain very worried that pot follows member will put savers at risk. We are pleased that the Government has recognised those issues and is considering minimum legal standards for DC pensions. This only goes some way to addressing the risks to consumers posed by pot follows member, but it is a step in the right direction.
“Good governance is critical in driving good outcomes. However, there are some thorny issues to resolve before these proposals will work. For example, it is difficult to place trustee-style fiduciary duties into contract based schemes without creating conflicts with the existing duties that providers face. But we are committed to working with the Government to try and overcome some of these obstacles.
“It is good to see strong and widespread interest in driving DC standards. The Government should ensure its work is aligned with work being done by the NAPF, Pension Quality Mark and the Pensions Regulator.”
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]