State Money For Pension Shake_Up

State Money For Pension Shake-Up

The government has admitted that the Personal Accounts Delivery Authority (Pada) will be given significant state funding, with only a long-term objective to fund itself.  At a recent pension even in London, PADA responded to concerns that the government will have to provide substantial funds to get the scheme up and running.  Once it is set up, it will operate through self-funding but the Pada board is a different matter.  It is being paid quite considerable amounts.  There will be state funding of Pada but, in the long term, the board will operate much like any other board of a defined-contribution scheme”.

PADA told delegates that employers believe that a pension is going to become a much more important recruiting tool after auto-enrolment.  We think it will be introduced in such a way that employers will be encourage to stick with what they have got.  He said that Government wants to send a signal that 3 per cent employer contributions are a minimum and that he expects most employers to offer more”.

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