Welcome to the Pensions Reform Group

"The Universal Protected Pension we put forward is the only workable scheme that guarantees to break the link between retirement and poverty" - Chair of the Pensions Reform Group, Rt. Hon. Frank Field MP.

The Pensions Reform Group was established in 1999 with membership drawn from politics, industry, academia, voluntary bodies, and other stakeholder groups. Our joint endeavour is to begin a serious and detailed debate on banishing pensioner poverty from our shores.

Latest News & Updates

Tuesday, 28 February, 2006

Alternative Approaches to the NPSS

Frank Field MP, Chairman of the Pensions Reform Group will today set out an alternative approach to the Pension Commission's proposals as part of the on going debate on pensions reform.

Speaking at the DWP hosting Pensions Summit, to be held in the Cabinet War Rooms, alongside the Association of British Insurers, the National Association of Pension Funds, and the Investment Management Association, to an audience including Lord Turner and senior civil servants, the former minister for welfare reform will set out the PRG's proposals for a universal funded defined benefit pension - called the Universal Protected Pension (UPP) to sit on top of the existing Basic State Pension.

Frank Field, said:

The UPP has many advantages over Lord Turner's and other proposals for pension reform. the PRG's proposals build on the success of Pension Credit, minimise mis-selling and will safeguard occupational pension schemes. The governance of the scheme would be modelled on the Bank of England, with the contributions reflecting a minimum pension provision of at least 25 per cent of average earnings. this will in turn allow the Government to promote an unambiguous message that saving for retirement pays.

Background information:

1. Abolition of pensioner welfare: the new UPP will be set at such a level that lifts all pensioners off means-tested benefits.

2. No new forms of compulsion: contributions for the UPP would be collected through the National Insurance system by the Contribtutions Agency and would be compulsory for all those in work.

3. No mis-advice or mis-selling: the introduction of the UPP will offer private financial institutions the guarantee that they cannot mis-sell savings and pension products to clients who could be better off claiming means-tested welfare.

4. Redistribution: the proposed pension is as redistributive as the Basic State Pension and addresses the needs of those who most need to save for their retirement but cannot afford to do so.

5. Funding: it is a critical element of the proposal that the scheme should be funded - to distance it from Government.

6. Independence: the scheme will have a governance structure modelled on the Monetary Policy Committee of the Bank of England with the trustees who administered the funded part of the UPP appointed by the Governors and ratified by active members of the scheme and pensioners.

For more information, and to read a copy of the PRG paper 'Alternative Approaches to the NPSS', please follow the link to the Reports and Publication page of this website.

Monday, 20 February, 2006

Fear of real change

Writing in Pensions Week, Frank Field describes how the NPSS is the least attractive side of the Turner Commission's proposals for reform.

To see the full text please follow this link to the press section of the site

To read the full press release please follow this link to the press page

Wednesday, 1 February, 2006

Chair of PRG speaks out against Turner proposals

Frank Field yesterday set out three key reasons why the reforms proposed by the recent Pensions Commission for the reform of the UK's pensions system are not fit for purpose.

Speaking in a House of Commons debate on the Pensions Commission report Frank Field, Chair of the Pensions Reform Group commented on a number of issues raised in Lord Turner's report:

1. The Pensions Commission report ignores the golden opportunity created by the Chancellor for serious, long-term pension reform. The short-term success of Pension Credit has opened the door for Governments to think carefully about the long-term reforms required.

2. The report does not address the long-term problems facing Britain's pension system and in terms of employer provision of pensions, if implemented the reforms could mean the end not merely of final salary schemes, but of defined contribution schemes. Many employers will think that the way for them to remain competitive is to opt into the new national pension saving scheme. The scheme would also leave Governments open to the charge of mis-selling should any one fund in the national pension saving scheme outperform another in the future.

3. Finally, a serious reform that tries to raise the basic pension significantly and which is on a pay-as-you-go basis will not last the course.

To see Frank Field's comments in full please follow this link