Guernsey Press

Proposed pension scheme 'would give value for money'

CREATION of a new pension scheme by the States to encourage greater private sector uptake would help benchmark value for money in the industry, experts have said.

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Leading pension providers in the island largely welcomed measures and incentives being proposed in the Personal Tax, Pensions and Benefits Review to promote and ensure adequate personal and workplace pension provision locally.

It includes Social Security and Treasury and Resources investigating the launch of a new pension scheme designed to capture those not currently making any kind of provision.

BWCI senior partner Stephen Ainsworth said it was looking forward to working with Social Security as the department started to develop its ideas and existing providers should generally welcome the plans to incentivise pensions savings.

'Given the policy intention to enable everyone to make private pension provision, there may well be the need to create default arrangements to ensure universal coverage, and this is the approach which has already been adopted in the UK,' he said.

'It will be a matter for discussion between SSD and the existing pension providers as to whether universal coverage can be provided from within the existing providers or whether a new pension scheme needs to be created for the purpose.

'In general, the pensions industry should welcome the additional incentives for pensions saving which are proposed in the report since this should lead to greater retirement provision and hence greater scope for business.'

'If a new pension scheme is created to run alongside the existing schemes then this would provide a good benchmark to ensure that pension providers continue to provide good value for money.'

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