Commenting on its report Pensions 2022 – a vision of the future, Chief Executive Officer Morten Nilsson argued that band earnings have a corrosive effect on employees’ pots.
“The reality is no savers actually get an eight per cent contribution – the most anyone gets is 6.9 per cent if they are exactly at the top of the earnings band, with somebody earning £15,000 only receiving a total contribution of 4.9 per cent which is woefully inadequate,” he said. He added that by removing band earnings and basing contributions on all salary employees’ savings would be boosted and it would eliminate some of the administrative complexity for employers. These comments were in addition to some of the views voiced within the report. Dr David Blake, Professor of Pension Economics at Cass Business School and Director of the Pensions Institute, suggested that the eight per cent contribution rate was not enough and it would take years before this target was reached. “Auto-escalation – the automatic increase in the contribution rate every year for three or four years – would in time provide the right level of contributions needed to produce a reasonable pension in retirement,” he said.
However, Nilsson believes that the Government is unlikely to address this issue until post 2017, which is why in the interim he has called for the removal of band earnings.
Automatic enrolment national advertising campaign to employers and intermediaries
27 October 2014
Monday 20 October saw the launch of the latest advertising campaign from The Pension Regulator: targeting employers and business advisers.
Background to campaign
With over 1.2 million employers left to go through the process and many of them probably looking for advice from intermediaries, we still have a big job to do to raise awareness of the need for all employers to have workplace pensions and this campaign specifically targets small, micro, individual employers and intermediaries. A direct, simple and pragmatic approach in telling people what it is they need to do and where to go to find out more for both employer and intermediaries.
Employer campaign: 20 October to 8 December
The employer campaign will run across radio, digital and press channels, appearing in a multitude of popular titles.. Also appearing in trade press across multiple sectors including: business/finance, HR, manufacturing, recruitment, health and social work, farming, construction, catering and hospitality, transport, motor trade and art & entertainment. o Call to action: Act now, it’s the law. o Web based adverts click through to: www.tpr.gov.uk/actnow
Intermediary campaign – 20 October to 11 December
Intermediary campaign across press and digital. Specific press aimed at bookkeepers, IFAs and accountants to help them prepare for AE.
CIPP Policy News Journal
08/04/2015, Page 341 of 521
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