11 July 2002

Green Paper on Pensions Due in the Autumn

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Work and Pensions Minister Andrew Smith announced that there is to be a Green Paper in the autumn which will look at occupational and personal pension policy in the round to make far reaching changes to enable more people to build up savings for their retirement.

Commenting on the independent report commissioned by the Government from Alan Pickering on cutting pensions red tape Mr Smith said:

'Alan Pickering's report makes some valuable proposals to simplify pensions legislation and administrative burdens on schemes and employers. He poses some tough questions which everyone concerned - employers, Trade Unions and pension providers - as well as Government need to think about.

'The challenge we face is to simplify the current system while maintaining the right balance between protection for the consumer and cost to the employer and provider.

'Now the Government will consider Alan's proposals and the pension proposals contained in Ron Sandler's report on the commercial savings market which was published earlier in the week and respond with a Green Paper in the autumn.

'We will also take into account the work going on at the Inland Revenue which is examining how the tax rules relating to pensions can be simplified.

'The Green Paper will set the Government's proposals for pensions reform in the broadest context. Alan's report covers complex issues and includes some tough choices. But it is right that we consider all the issues to produce a reform of occupational and personal pensions that stands the test of time.

'Our polices will be designed for the long-term. People need to be able to plan and make decisions for the future, confident that their choices of today will not be overwhelmed or made redundant by policy changes in the future.'

Mr Smith outlined that the Government's proposals will match the following principles:

fairness security in retirement

informed choice for consumers

simple and proportionate regulation

ensuring incentives are effective and well understood

promoting employment amongst older workers

flexibility to give individuals more choice over the pace at which they retire from the labour market.

Mr McCartney, Pensions Minister added: 'The UK population is ageing and we want to help older people to stay in work ending the cliff-edge between work and retirement.

'More than ever we need to harness the knowledge and skills of our older workers and help those that want to stay in work do so. Too often people are forced into retiring when they really want to continue working. We are keen to see a major shift in our working culture that recognises the benefits of a balanced workforce.

'Building on existing foundations we want to encourage people to save more for their retirement by, amongst other things, ensuring they have the information they need to plan for their later life.

'The Government will work in partnership with business, unions and pension providers to tackle these issues. We all have a part to play.'

© Department for Work and Pensions