Aviva fears "one size fits all" pension reform

Aviva fears blanket pension reform will lead to employers switching to Personal Accounts post-2012, just to avoid the burden of extra administration.

In its response to the Government's consultation paper, Workplace Pension Reform - Completing the Picture, Aviva says, while it broadly supports the proposals, it is concerned good existing schemes will fall foul of a "one size fits all" approach.

Paul Goodwin, head of pensions marketing at Aviva, says: "The latest DWP consultation includes some encouraging changes from the previous draft, but we remain concerned that it will impose a "one size fits all" pension regime.

"Our major concern is certification - employers will face considerable administrative burdens to prove their existing schemes meet the banded earnings test."

"This could lead to levelling down, either as employers change their pay practices to meet the test, or shift to Personal Accounts to avoid the extra administration."

Good quality schemes and their members should benefit from a short-term exemption from legislative changes and the focus switched instead to getting new people saving, he adds.