Speaking at the NAPF annual conference in Liverpool, Webb played down fears that the impending deadline will lead to many providers being unprepared due to a lack of clarity over the details of the changes.
“We understand that April isn’t that far away,” he said. But people are working day and night to ensure everything, from the IT requirements to clearer policies, are all in place by that time.
“With the general election just one month later, there is no greater motivation to get it finished. The chancellor and I are determined to make it work.”
One of the changes he was referring to was the introduction of the 0.75% charge cap on automatic enrolled pensions. This is designed to lower the administration costs for savers, ultimately delivering better value and more money in pots.
The Department for Work and Pensions today released a paper confirming the cap to be introduced in 2015. And while Webb acknowledged there have been calls to delay it past April, he insisted this was not something the government had ever considered.
“A lot of people have said it should be put back because there is so much going on in April, but we say no, no, no," Webb said. "We’re looking to address issues within the administering of the pensions such as transaction costs, which I see as the murky secret of the reforms.”
Government tinkering
In an earlier session, hosted by HR magazine deputy editor Katie Jacobs, SAB Miller head of compensation and benefits Roger Fairhead urged the government to allow a period of consolidation for workplace savers.
“If we really want to get people involved in pensions, they need to stop messing around with them so that people can get a clearer picture of what’s happening,” he said.
