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Tory MP tables Pension Bill amendment to back OMO
by William Robins on Oct 13, 2011 at 10:35
An amendment to the Pensions Bill to make providers promote shopping around using the open market option (OMO) has been tabled by Tory MP Harriet Baldwin.
Baldwin (pictured) made an offer to insert the amendment to Tom McPhail, chairman of the Pension Income Choice Association (Pica) which wants shopping around to be the default option at retirement.
The amendment says: ‘Providers of qualifying schemes under section 16 of the Pensions Act 2008 must, when informing members of their own range of annuity and similar products, explain clearly that alternative and more suitable options from other providers may be available.’
Baldwin has been a supporter of pension reform, voting for auto-enrolment and encouraging uptake of occupational pensions. The amendment has been signed by seven other MPs.
The Association of British Insurers last month announced members would have to remove annuity application forms from customer communications, but McPhail said the plans did not go far enough.
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1 comment so far. Why not have your say?
Jonathan Kirby
Oct 13, 2011 at 11:27
I think she is a bit behind the times. They have been advising regarding the OMO/IVPP etc. for a long while.
However, are we ever going to get these things 'explained clearly'?
Given the litigiousness of the public, spurred on by the regulators and those self appointed guardians 'Which', every bit of paper is ten times as complex as it needs be as they need to cover every potential problem.
And now of course, when everything is explained, the complaint gets upheld because the client couldn't be expected to read all the cr*p,
Oh joy.....
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