Personal Accounts: Governance

In order to achieve commencement of the personal accounts scheme in 2012, as proposed in the White Paper, the commercial processes would need to be sufficiently progressed to be ready to issue Invitations to Negotiate in July 2008.

To enable the commercial process to remain on schedule, a substantial amount of preparatory work will be needed. This work will begin in the Department for Work and Pensions with analysis and advice to ministers on the consequences of policy options. To further this work the Bill provides for the establishment of a delivery authority that can bring in the necessary expertise to ensure this project is a success.

The personal accounts delivery authority (PADA) will precede the governance body/board of the personal accounts scheme. PADA is a new scheme public body accountable to Parliament and reporting, through a board, to the Secretary of State for the Department for Work and Pensions.

Its functions will be limited to advising on implementation issues and on the implications of proposed policy decisions on the setting-up of a personal accounts scheme. Their "job" is to get up and running a national, trust-based pension scheme called 'personal accounts' — and to support the process by which people are enrolled in this or another suitable pension scheme.

Until implementation, their role is to give independent advice to Government on the operational and commercial consequences of its policy choices. This will help to ensure legislation is grounded by the practical realities of delivering an effective and affordable retirement scheme for up to seven million or more people.

Once the scheme is established it is proposed that a personal accounts board (PAB) of trustees be established to oversee the and manage on-going management of the scheme