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| New pension scheme to be unveiled | New pension scheme to be unveiled |
| (about 1 hour later) | |
| Details of a new national pension system will be published on Tuesday in a government White Paper. | Details of a new national pension system will be published on Tuesday in a government White Paper. |
| Described as "personal accounts", from 2012 they will automatically cover all staff who do not have access to a good pension scheme run by an employer. | Described as "personal accounts", from 2012 they will automatically cover all staff who do not have access to a good pension scheme run by an employer. |
| The idea was first proposed by Lord Turner's Pensions Commission to ensure that more people save for retirement. | The idea was first proposed by Lord Turner's Pensions Commission to ensure that more people save for retirement. |
| Its key feature is that employers will be forced to contribute if their staff join up. | Its key feature is that employers will be forced to contribute if their staff join up. |
| The government hopes this will help plug the gap in the nation's retirement savings and supplement the continuing state pension and private pension systems. | The government hopes this will help plug the gap in the nation's retirement savings and supplement the continuing state pension and private pension systems. |
| Women | Women |
| Around 12 million people are currently estimated not to be saving enough for their retirement. | Around 12 million people are currently estimated not to be saving enough for their retirement. |
| Michelle Mitchell of the charity Age Concern said the new pension system would be particularly beneficial to women. | Michelle Mitchell of the charity Age Concern said the new pension system would be particularly beneficial to women. |
| "Personal accounts are good news for anyone without access to a decent occupational pension, particularly the millions of women who are currently missing out," she said. | "Personal accounts are good news for anyone without access to a decent occupational pension, particularly the millions of women who are currently missing out," she said. |
| The personal accounts will require employees to pay in 4% of their salaries and employers 3%, with an extra 1% from the government in the form of tax relief. | The personal accounts will require employees to pay in 4% of their salaries and employers 3%, with an extra 1% from the government in the form of tax relief. |
| Enrolment of staff will be automatic, though they will be able to choose to opt out. | |
| However, the TUC has warned that some employers may put pressure on staff to do this, in order to avoid paying their contributions. | However, the TUC has warned that some employers may put pressure on staff to do this, in order to avoid paying their contributions. |
| "There has been a great deal of employer and industry lobbying to weaken crucial aspects," said TUC general secretary Brendan Barber. | "There has been a great deal of employer and industry lobbying to weaken crucial aspects," said TUC general secretary Brendan Barber. |
| Breaking consensus? | Breaking consensus? |
| The government has spent a lot of time and effort trying to win support for its main policy of raising the value of the state pension in line with earnings rather than inflation but paying it later, from age 68. | The government has spent a lot of time and effort trying to win support for its main policy of raising the value of the state pension in line with earnings rather than inflation but paying it later, from age 68. |
| But on personal accounts there has been some concerted criticism. | But on personal accounts there has been some concerted criticism. |
| The Lib Dem shadow work and pensions secretary, David Laws MP, said the accounts would be of little benefit to anyone who was self-employed or who spent time out of employment. | The Lib Dem shadow work and pensions secretary, David Laws MP, said the accounts would be of little benefit to anyone who was self-employed or who spent time out of employment. |
| "The huge number of means-tested benefits which accompany them will lead to many people losing up to 85 pence of every pound that they save," he said. | "The huge number of means-tested benefits which accompany them will lead to many people losing up to 85 pence of every pound that they save," he said. |
| "This is a very high price to pay for the hopelessly inadequate basic state pension, which we will be stuck with in this country, even after recent reforms are implemented," he added. | "This is a very high price to pay for the hopelessly inadequate basic state pension, which we will be stuck with in this country, even after recent reforms are implemented," he added. |
| Others in the pension industry have claimed that some employers will see the compulsory contribution level of 3% as a target for their own existing company pension schemes, leading to a general levelling down of employer pension provision. | Others in the pension industry have claimed that some employers will see the compulsory contribution level of 3% as a target for their own existing company pension schemes, leading to a general levelling down of employer pension provision. |