BUILDING PERSONAL ACCOUNTS: CHOOSING A CHARGING STRUCTURE

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BUILDING PERSONAL ACCOUNTS CHOOSING A CHARGING
STRUCTURE

• Friday 28 March 2008

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OPENING REMARKS

• Paul Myners
• Chairman, personal accounts delivery authority

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PERSONAL ACCOUNTS DELIVERY AUTHORITYS VIEW POINT

• Tim Jones
• Chief Executive, personal accounts delivery
  authority

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CONTENTS

• Rationale for consultation
• How can you help us?
• What are the charging structure options?
• Proposed evaluation criteria
• member outcomes
• participation
• sustainability
• How to respond

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RATIONALE FOR CONSULTATION

• On the 29th January 2008 we launched a public
  consultation on the most appropriate charging
  structure for personal accounts because
• this is a key design decision which impacts
  directly on the retirement outcomes of members
• it is not clear what the best charging structure
  will be we do know that some difficult trade
  offs will have to be made and
• we want to canvass your views on how to make this
  trade off and to gather relevant evidence to help
  us ensure we make the best recommendation.

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Choosing a charging structureHow can you help us?
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HOW CAN YOU HELP US?

• Our consultation includes 13 questions focused on
  two main areas
• Evaluating the options
• How should we evaluate the options and what
  weight should we apply to different factors?
• Building our evidence base
• What is the current evidence base which will
  support our recommendation?

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Choosing a charging structureWhat are we
consulting upon?
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WHAT ARE THE CHARGING STRUCTURE OPTIONS?

• Annual management charge
• Contribution charge
• Joining fee and annual management charge
• Annual management charge and a contribution
  charge
• Anything else?

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PROPOSED EVALUATION CRITERIA
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OUTCOMES FOR MEMBERS

• No charging structure is the best, or the worst,
  for all members
• Range of outcomes for different members who
  join at go live

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PARTICIPATION

• Participation is important
• Findings from our research on attitudes and
  reactions to possible charging structures
• Building our evidence base

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SUSTAINABILITY

• What do we mean by sustainability?
• A viable funding solution
• Minimising scheme costs
• Minimising business risks

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Choosing a charging structure How to respond
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HOW TO RESPOND - TODAY

• Session 1 View points from some of our
  stakeholders
• Chris Curry from the PPI
• Helen White from the ABI
• Dominic Lindley from Which?
• Two interactive sessions in breakout groups
• Session 2 Do we have the right criteria and what
  weight should be placed on the different
  criteria?
• Session 3 Building the evidence base

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HOW TO RESPOND - AFTER TODAY

• The consultation period covers 12 weeks from 29
  January until 22 April 2008.
• Your response can be submitted by email or
  letter
• Email charging.padeliveryauthority_at_dwp.gsi.gov.u
  k
• Post Charging Consultation Team
• personal accounts delivery authority
• New Court
• Room 567
• 48 Carey Street
• London
• WC2A 2LS
• Phone [phone]
• A copy of the discussion paper to support our
  consultation can be found on our website
  www.padeliveryauthority.org.uk

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CLOSING REMARKS

• Paul Myners
• Chairman, personal accounts delivery authority