NAPF calls for common sense in pensions bill
The National Association of Pension Funds (NAPF) has called for the government to exercise a degree of common sense as it looks to have the pensions bill progress through parliament.
A debate is set to go ahead this week in the House of Lords on the subject of pension reform and the NAPF is concerned that current proposals would damage the financial wellbeing of employers around the country and their staff.
The issue that the association is concerned about is that of "qualifying earnings", which would establish a minimum salary level below which no pension contributions would be made on an employee's behalf.
At present, no such threshold exists and if it were to come in from 2012, employers would be inclined to rearrange their entire pension structure and individuals on low earnings would be likely to lose out, according to the NAPF.
"All that is needed is a common sense change to the definition of qualifying earnings and we should see a good outcome for everyone," said Joanne Segars, NAPF chief executive.
Engage Mutual Assurance reported last week that millions of Britons are worried that their ageing parents have not saved enough money to support themselves in retirement.
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