The UK's Pensions Administration Standards Association (PASA) has called for pension administrators to be able to talk to scheme members and employees about the advantages of paying into a pension without the fear that they will be accused of having given financial advice

Speaking on 26 September, Margaret Snowdon, chairman of PASA, has called for a 'safe harbour' where giving people information on pensions should not be seen as regulated advice but as member engagement.

"There is a role for pensions administrators here. Pensions administrators are, most importantly independent, but they are also professionals as well as a hugely skilled and often under used resource," said Snowdon.

"The government should wake up to this as they may well be able to help it achieve some of its objectives."

She said that while there seems to be a general realisation that saving for retirement must increase,  the work involved in encouraging individuals to join, stay in or increase contributions to a work-based pension scheme is still grossly under-estimated.

"Auto enrolment will bring this into sharp relief," she said.

The chairman of PASA, which changed its name from Raising Standards of Pension Administration last year, stressed that people need help and support in acting on the knowledge that something needs to be done for the future. "However, in reality, how as an industry are we able to achieve this? There is much talk of the problem, not much of the potential solutions," she said.

The independent organisation is worried that individuals will turn to employers for help, but that these are "handicapped by fear of breaching the scary regulated advice boundary". 

"It's not just employers who are reluctant to give a little helpful guidance - pensions administrators, who can be ideally placed to help, usually feel they can't," said Snowdown. 

First published 26.09.2011

azeevalkink@wilmington.co.uk