UK - Pension managers are sceptical over how simplification proposals will evolve.
And even managers who generally gave their backing to the Green Paper warned that the real benefits of simplification would depend on how reform was implemented.
Diageo UK pensions director Graeme Robertson said: “It comes down to the fine detail – that seems to be the thing that always gets us.
“If the implementation is nice and straightforward, then I think there is a lot to commend.”
But J. Sainsbury pension and death benefit scheme manager Geof Pearson was more circumspect.
He said: “It is not the answer, though I do believe it is a positive step forward.”
And West Midlands Metropolitan Authorities Pension Fund chief pensions officer Mike Woodall thought the Green Paper had failed to address the fundamental issues of the savings gap and diminishing employer contributions to pension schemes.
He said this would only be solved by introducing some sort of compulsion.
Woodall said: “Unless those issues are addressed we are still in a situation where individuals will face a bleak and financially insecure retirement.”
He was particularly disappointed that the government had decided to raise the public service pension age from 60 to 65 for new members – a move which he felt was a “retrograde” step.
But he applauded rules that required schemes to circulate information to their members on a frequent basis – a move he believes will enable people to plan their retirement better.
He said: “This is something that is already well established in the LGPS environment and it is good to see that best practice been replicated elsewhere.”
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