It seems Aviva is in anxiety these days, although experts consider that the same is not trivial or without cause at the same time. What is its anxiety then? Well, it has been learnt that the globally acclaimed insurance group dreads that the all-encompassing pension reform will initiate employers switching to Personal Accounts post-2012, merely to steer clear of the load of additional administration.

This becomes more evident from its recent responses. In its response to the Government\'s consultation paper, Workplace Pension Reform - Completing the Picture, Aviva states very clearly, whereas it largely does advocate the proposals, it is concerned good existing schemes will fall foul of or infringe a "one size fits all" approach.

Commenting on this sudden development 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."

What is more he adds, good quality schemes and their members should take advantage of a quick-fix exemption from legislative changes and the focus switched instead to getting new people saving.

 

Aviva plc is the world\'s fifth-largest insurance group, the largest insurance group in the UK and the second-largest insurance group in Canada operating as Aviva Canada. It is one of the leading providers of life and pension products in Europe and has a presence in 28 countries worldwide, notably France and The Netherlands. Being a premier company, it is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

The foremost activities of Aviva are general and life insurance in addition to long-standing savings and fund management.