UK - The Conservative Party has said it will not guarantee its support for the Pensions Bill unless changes to means testing are made.
Grayling said the main sticking point of the Bill was means testing. He warned there was a potentially large number of workers who would be no better off under the new system of Personal Accounts.
Grayling said: "There are a lot of unknowns in the Bill, we agree Personal Accounts in principle are a good thing. The issue is the interaction between means testing and Personal Accounts."
He added that some people who had saved for retirement would find the cash they had accrued would not be enough, so there would have been no benefit to them saving at all.
Grayling and Nigel Waterson, shadow pensions minister, said the Department of Work and Pensions should produce an options paper on ways to address this issue, as the DWP was the only the only organisation with the available information to quantify exactly how many people would be affected.
In the briefing, Waterson also said he was concerned about the lack of deregulation in the Bill, to incentivise defined benefit schemes to stay open. He said he would be looking at conditional indexation and risk sharing.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.