25 July 2007 - Paul Myners to head Personal Accounts Delivery Authority
Secretary of State for Work and Pensions Peter Hain today announced the appointment of Paul Myners as Chair Designate [Footnote] of the Personal Accounts Delivery Authority. His appointment will take effect from 1 August.
Paul Myners has extensive executive experience in the financial sector including directorships at N. M. Rothschild & Sons Ltd and NatWest, and as Chief Executive of Gartmore, as well as a wide range of interests across other industry sectors. He is Chairman of the Guardian Media Group and Land Securities Group with previous non executive positions at Marks and Spencer, O2, Orange, PowerGen and Aspen Insurance and membership of the Financial Reporting Council. He is also Chair of the Low Pay Commission.
He has conducted independent reviews for Government on Institutional Investment, Governance of Mutual Insurance Companies, and Equity Investment in Science Based Enterprises.
Peter Hain said:
“The Government is absolutely committed to making personal accounts a success. That is why we are setting up an independent body now with the necessary skills and experience to get the policy design of personal accounts right, and to ensure that the interests of members remain at the heart of the scheme.
“The appointment of Paul Myners as Chair Designate of the Personal Accounts Delivery Authority shows that we are committed to recruiting Board members with a proven track record and the expertise to get the job done. Paul will bring a wealth of knowledge and experience to this challenging role.”
The delivery authority will offer independent advice to Government and, with Parliamentary approval, will be responsible for getting personal accounts up and running and for ensuring employers meet their new obligations.
Personal accounts will extend the benefits of an occupational pension – including an employer contribution and tax relief - to millions of employees who currently do not have access to a good workplace pension. It will offer low charges to allow employees to keep more of their savings. Up to 10 million people will be automatically enrolled in the scheme from 2012.
Paul Myners said: “I am delighted to be appointed as the Chair Designate of the Personal Accounts Delivery Authority. Setting up a trust-based, occupational pension scheme, with up to 10 million members, is going to be a major undertaking, and I look forward to getting on with the role. I have made a personal decision to donate my salary for this role to charity.
“One of my first tasks will be to take part in the selection of the Chief Executive and other key appointments.”
Recruitment for a Chief Executive and other appointments to the board is under way.
Notes for editors
- The Pensions Bill 2006 provides for the Personal Accounts Delivery Authority
to be established. Initially, the authority’s remit will be limited
to:
- Providing advice and making recommendations to support the Government in understanding the operational and commercial implications of the options for delivering personal accounts; and
- Advising on the design of the commercial strategy, including the financial, technical, commercial and communications analysis needed for scheme development.
- The Government plans to legislate further in a second Bill, extending the delivery authority’s remit and giving it executive powers to then assume responsibility for delivering the personal accounts scheme and the system to ensure that employers meet their new obligations within a framework set by Government.
- Employees will contribute a minimum of 4 per cent of their earnings (between approximately £5,000 and £33,500) a year, matched by a minimum 3 per cent employer contribution and around 1 per cent in the form of normal tax relief from the government.
- On 14 June 2007 the Government published its response to the consultation on the White Paper Personal Accounts: a new way to save and its response to the Work and Pensions Select Committee report on personal accounts. The full consultation response can be read at www.dwp.gov.uk/pensionsreform/ More information on Personal Accounts can be obtained at www.dwp.gov.uk/pensionsreform/new_way.asp
- Paul Myners’ appointment will commence on 1 August 2007 and will be for an initial period of three years. The appointment has been made in full conformity with the Code of Practice of the Office of the Commissioner for Public Appointments.
- “All appointments are made on merit and political activity plays no part in the selection process. However, in accordance with the original Nolan recommendations, there is a requirement for appointees’ political activity (if any declared) to be made public”. Paul Myners has declared that he is not a member of a political party and has made no donations to any party.
- Paul Myners’ current public appointments include Chair of the Trustees of the Tate, member of the Court of the Bank of England and Chair of the Low Pay Commission.
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The Pensions Bill 2006, upon Royal Assent, would allow the Personal Accounts Delivery Authority to be established. Paul Myners would then become Chair rather than Chair Designate.