Firms not preparing for personal accounts

Personal Accounts are due to be introduced in 2012, and aim to get millions of people in the UK saving into an occupational pension.

According to a survey conducted by Aon Consulting, however, 94 per cent of organisations have failed to discuss the issue of personal accounts at a governance, trustee or board meeting and a number of small and medium sized enterprises have low awareness about the issue.

Aon Consulting is urging companies to start planning now in order to tackle potentially the largest administrative task in corporate history.

Helen Dowsey, principal at Aon Consulting, said: "It is a cause for concern that over 90 per cent of businesses have not discussed personal accounts - one of the biggest corporate administrative tasks ever undertaken - at a trustee or board meeting.

"Employers and trustees should raise the topic of personal accounts at board meetings so that financial director’s are alerted to the potential costs needed in additional contributions as well as the impact on payroll and administration processes.

"Businesses may not be able to make many decisions now but it is definitely worth getting the ball rolling as critical decisions will need to be made in the near future," she said.

Aon's research coincides with yesterday's (6 November) announcement by the new pensions minister, Rosie Winterton, that she will allow "room for manoeuvre" for employers to "self-certify" that the contribution structures on their existing pension arrangements are at least equal to those proposed on personal accounts.

Dowsey, said: "This is an important clarification that will enable employers to plan more easily and significantly reduce the administrative burden that may have been required."