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| Version 4 | Version 5 |
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| New pension scheme to be unveiled | New pension scheme to be unveiled |
| (30 minutes later) | |
| Plans for the automatic enrolment of workers into a new pension system are to be unveiled by the government. | Plans for the automatic enrolment of workers into a new pension system are to be unveiled by the government. |
| From 2012, workers not in occupational pension schemes will be enrolled in "personal accounts" unless they opt out, under the White Paper plans. | From 2012, workers not in occupational pension schemes will be enrolled in "personal accounts" unless they opt out, under the White Paper plans. |
| Staff will pay in 4% of their salaries and employers 3%, with an extra 1% from the government in tax relief. | Staff will pay in 4% of their salaries and employers 3%, with an extra 1% from the government in tax relief. |
| However, some small businesses have objected to the idea of compulsory contributions. | However, some small businesses have objected to the idea of compulsory contributions. |
| PERSONAL ACCOUNTS EXPLAINED Employees compelled to join the scheme, unless they already have a good workplace pension or choose to opt outEmployees, employers and the government contribute to personal accountsWho administers the personal accounts system - the government or insurers - yet to be announcedStart date for personal accounts likely to be around 2012Personal accounts part of a wider pension shake-up involving a raising of the state pension age to 68 | PERSONAL ACCOUNTS EXPLAINED Employees compelled to join the scheme, unless they already have a good workplace pension or choose to opt outEmployees, employers and the government contribute to personal accountsWho administers the personal accounts system - the government or insurers - yet to be announcedStart date for personal accounts likely to be around 2012Personal accounts part of a wider pension shake-up involving a raising of the state pension age to 68 |
| The proposals would affect up to 10 million workers who are not in employer-funded schemes. | The proposals would affect up to 10 million workers who are not in employer-funded schemes. |
| The system's key feature is that employers will be forced to contribute if their staff join up. | The system's key feature is that employers will be forced to contribute if their staff join up. |
| The government hopes the scheme will help plug the gap in the nation's retirement savings and supplement the continuing state pension and private pension systems. | The government hopes the scheme will help plug the gap in the nation's retirement savings and supplement the continuing state pension and private pension systems. |
| 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. |
| Women 'benefit' | Women 'benefit' |
| About 12 million people are currently estimated not to be saving enough for their retirement. | About 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. |
| There has been a great deal of employer and industry lobbying to weaken crucial aspects (of personal accounts) Brendan Barber, TUC general secretary href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=4971&edition=1" class="">Send us your comments | |
| "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. |
| However, the TUC has warned that some employers may put pressure on staff to opt out of the scheme in order to avoid paying their contributions. | However, the TUC has warned that some employers may put pressure on staff to opt out of the scheme 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. |
| BBC Economics Correspondent Hugh Pym said there was "broad acceptance" of the plan from industry groups, but that some small businesses had objected to the idea of compulsory contributions. | BBC Economics Correspondent Hugh Pym said there was "broad acceptance" of the plan from industry groups, but that some small businesses had objected to the idea of compulsory contributions. |
| 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. |
| And the National Association of Pension Funds (NAPF) has warned that companies with more generous schemes could be tempted to level them down to match the new personal accounts. | And the National Association of Pension Funds (NAPF) has warned that companies with more generous schemes could be tempted to level them down to match the new personal accounts. |
| It urged ministers to ensure the plans complemented rather than replaced existing schemes. | It urged ministers to ensure the plans complemented rather than replaced existing schemes. |