TUC response to Personal Accounts Delivery Authority consultation April 2008

Introduction
1.1 Our fundamental starting point on this issue is that the costs of the scheme must be kept low.
1.2 In considering the available evidence, our preference is for a contribution charge for personal accounts, where the charge is calculated as a proportion of each contribution made by member.

Contribution charge
1.3 We believe a contribution charge should be the model for personal accounts for the following reasons.

e-learning for pension scheme trustees

Here's a great new online toolkit and training programme from the Pensions Regulator. The benefits are simple…

• It’s free – log on now and take a look
• It’s easy to use – based on real-life case studies
• It’s convenient – learn at your own pace

Complete the e-learning programme and you’ll be well on the way to complying with the requirements of the Pensions Act 2004.

Log on now…. www.trusteetoolkit.com

The Bill is the second part of the package of reforms to the UK pensions system set out in the May 2006 Pensions White Paper, Security in retirement: towards a new pension system. The first part of the reforms, taken forward by Pensions Act 2007, included reform of the state pension.

Key areas:

• Proposes a duty on employers to automatically enrol jobholders into, and to contribute to, a qualifying workplace pension scheme 
• Introduces the concept of personal accounts which are described as a 'simple, low-cost pension saving scheme' aimed at moderate to low earners who currently do not have access to a workplace pension scheme. This would be overseen by a Personal Accounts Delivery Authority
• Sets out a compliance regime for the new duties on employers.

Other measures relate to: the revaluation of deferred pensions, the additional state pension^*, pension credits, pension sharing on divorce or dissolution of civil partnership, the Pension Protection Fund and the Pensions Regulator.

We recently sent to all Pensions Champions a brief survey asking for information about your activities in supporting colleagues on pensions. Many thanks to those of you who have already sent back information. Early reports confirm that there is the demand for workplace based guidance and that the scope for providing it is considerable.  Will those of you who have not yet replied do so as soon as possible please? We are preparing a report on the project’s progress and information from as many of you as possible is vital.

The recently published Pensions Bill (December 2007) will implement the final elements of reform recommended by the Pensions Commission lead by Adair Turner. Key features are:
1.      A duty on all employers to automatically enrol employees and workers into, and to contribute to, a qualifying workplace pension scheme.
2.      Establishing a compliance regime and introducing new employment rights as part of the compliance regime.
3.      Establishing the Personal Accounts pension scheme.

A Consumer Representative Committee (CRC) has been set up in order to ensure that the consumers’ voice is heard when the personal accounts scheme is being set up appointed. The CRC role will be to advise the Personal Accounts Delivery Authority (PADA) on plans relating to consumers and future members of personal accounts.
Jeannie Drake, Deputy General Secretary of the Communication Workers Union, who is a non-executive director of PADA, will chair the CRC. Additionally, Nigel Stanley, Head of Campaigns and Communications at the TUC, has been appointed to the committee.
Nigel was in no doubt about the potential importance of Personal Accounts to many workers when he said: “Personal Accounts are a victory for union campaigning. For the first time all employers will have to contribute to the pensions of their staff. My job is to make sure that they deliver the best possible pension schemes for the millions without a current work based pension.”

Attached to download is a list of TUC pensions courses planned for the coming year so far. As you will see they are being offered over a wide area and, hopefully, there is going to be one near you. Please pass on the information to anyone you think might be interested.

Officers at Connect, the trade union for professionals in communications, thought that the Pensions Champions project addressed some of the problems in the telecommunications industry and would appeal to their members. They were proved right after a note about it in their magazine, Connected, circular produced nearly 50 respondents who wanted to become champions.

Discussions between Connect and TUC tutors at the College of North East London produced a customised version of the course materials, targeting members in British Telecoms (BT). Ben Marshall, Head of Industrial Relations officer for the union and Jennifer Schofield, EC member and Chair of Connect’s Pensions Committee attended the course and provided detailed information on the BT pensions schemes.

 
Further progress in setting up pensions champions training was made last week when Terry and Craig Hawkins ran a briefing on the Pensions Champions course and website for a dozen TUC tutors. The focus was mainly on using the website and the Pensions Doctor in particular. All agreed that it was a valuable resource for both the pensions champions training and other pensions courses. Already the statistics gathered on website usage show that plenty of individuals are also logging on to make use of the information provided.

The first Pensions Champions at work course was held last week at Congress House. We had 9 reps attending who had varying pensions experience, from barely any at all to others who had been member nominated trustees of the pension schemes for some while. All agreed that the course met their different needs including basic pension provision, changes and improvements that are likely, and working with members. The liveliest session was probably the one testing out this new website and preparing prescriptions for individual members.