Pilot project produces first pension statements

Last month the first combined pension statements were circulated to over 2,000 employees of the EMAP media group. The Department of Social Security (DSS) is working with a number of employers in a pilot project to produce statements of pension benefits setting out what employees can expect to get from state provision plus their employer's occupational scheme, group personal pension or stakeholder pension.

Pensions minister Jeff Rooker said "Once people see in black and white what they will have to live on I think they will realise the importance of saving for their old age and I hope it will prompt them to review the provision they have made for their retirement."

The government is working with several other employers on the project including Sainsbury and the pensions and insurance companies NPI, AXA/Sun Life and Prudential. It hopes that up to 15 million working people will be getting combined annual pension statements by 2005.

The DSS acknowledges that these statements will not be complete as they do not include any deferred pension entitlement built up with previous employers or any personal pension provision not connected to the current employer. However, the DSS thought that it would be too complicated to provide this level of information at this stage.