It emerged late yesterday that the Pre-Budget Report included yet another delay to the full implemenation of the National Pension Savings Scheme (‘NPSS’ or ‘Personal Accounts’).

At launch the Government stressed that this project would not become “another Terminal 5″ but following September’s announcement of significant extensions to the originally proposed launch timetable, yesterday’s news extended what was an 18 month implementation period into a four year project.

Reaction to this announcement has been mixed - it does reduce employer costs to a degree which is always welcome, political commentary suggests that the real driver is the estimated £2.4bn it will save the Government in tax-relief and amounts to yet another delay in securing pension funding for millions of workers without pension plans.

An up to date EBS summary of the latest proposals can be found here. What does remain constant is that all employer pension arrangements must offer auto-enrolment of employees by 2012. Speak to EBS to learn more about how these proposals will affect you or your business.

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