NAPF comments on personal accounts
Government plans to set up 'personal accounts' as an alternative to a private pension plan have been welcomed by the National Association of Pension Funds (NAPF).
The accounts are proposed to be offered alongside corporate pension funds, by being automatically put in place for workers for companies that do not offer an occupational pension scheme for workers.
In this way, employees can build up a pensions pot in addition to their state pension even if they do not enrol in a private or corporate plan.
Personal accounts are to affect low to medium earners, a band of salaries worth between £5,000 and £33,500 a year.
Head of press at NAPF, Mark Brooks, said: "We support the introduction of personal accounts so long as they complement and do not replace existing good workplace pension provision.
"They will impact employers, especially those who currently make no contribution to a workplace pension for their staff."
The accounts are scheduled to be introduced in 2012.
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