UK – The National Association of Pension Funds has expressed its fears about the proposed National Pensions Savings Scheme becoming an unnecessary “fourth pillar”.

“We probably wouldn’t need a fourth pension pillar if the first three were stuffed into one, and it worked,” said NAPF chairman Robin Ellison. He told IPE: “The creation of a fourth pillar is likely to create even more confusion.”

He declined to comment on how much the system could cost, amid suggestions it could rise to £3bn (€4.3bn). “There is government risk for running one centralized system. Its track record for operating central systems has been mixed.”

One global custodian approached by IPE declined to comment on how much a centralized system would cost. “I have no idea,” he said.

Speaking at London’s Cass Business School today, Ellison labelled government promises of simplification as “disingenuous” in his presentation. This follows in the wake of increasing regulations in an already very complex pensions system.

“We the_NAPF want a simpler, better, cheaper administered state system for everyone,” he said. “Let’s have a simple state system.”

Furthermore, according to Ellison, Turner has crossed the boundary in telling others what is good for them.

The NPSS calls for 8% of low-income workers’ income to be placed in a pensions pot.

“But it might be better for low income workers to pay off their credit cards or pay for extra training,” said Ellison.

“There is no simple single answer, but we do know that the answer we have at the moment is wrong,” said Ellison.