Autumn Statement 23: Jeremy Hunt sets out 'pot for life' pension reforms
Jeremy Hunt (pictured) prepares to deliver his Autumn Statement | Copyright: HM Treasury
In the Autumn Statement today (22 November) Hunt said the government will consult on giving pension savers a «legal right to require a new employer to pay pension contributions into their existing pension».
The measures — trailed in an article by the Financial Times yesterday — are understood to be similar to the approach taken by countries such as Australia, which introduced so-called «super choice» rules in 2005.
In the run-up to the announcement, the industry opined on the potential impact of such measures.
Eversheds Sutherland partner Michael Jones said that, if announced, the measures would be «ground-breaking» and «signal a shift from employer choice to member choice in the UK pensions system».
The Lang Cat director of public affairs Tom McPhail said there were a range of pot for life versions that could be implemented.
He said: «The simple version of pot for life — member choice — is just about giving employees the right to choose which pension they join and where their employer pays their contributions.
»The more complex version involves eliminating altogether the current employer role of designating a workplace pension for their staff. Under this scenario, when someone first joins a new job, they would be automatically allocated a pension from a small pool of big pension schemes. This is akin to the Australian system of ‘stapling'."
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