Personal accounts 'should run in best interest of members'
The proposed system of personal accounts should be run in the best interest of its members, with its board independent of government interference, it has been claimed.
According to recent research from the Pensions Policy Institute, future stakeholders in the new scheme feel that the government should be responsible for key policy decisions, such as setting a cap for contributions.
However, stakeholders also feel that the personal accounts board be independent of government to reduce the risk of investment decisions being adversely affected by political interference.
Niki Cleal, a director of PPI, said: "We found that stakeholders support the delivery authority and the personal accounts board having a tightly focused remit to set up and deliver the personal accounts scheme."
She added that the authority and board would be able to advise the government on policy decisions including contribution caps and the target market of the scheme, but would not bear the responsibility for these choices.
In March 2007, the government reported that it was committed to reaching a consensus among relevant parties on the details of the personal accounts system.
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