The UK could benefit from a consistent national pension policy if the Government continues to adjust the department that has responsibility for pension planning, says AWD Chase de Vere Consulting.

The consultant is calling for a debate to take place looking at the possible formation of an independent body, akin to the Bank of England's Monetary Policy Committee, following the fifteenth set of ministerial changes within the pensions department.

"We've had fifteen different ministerial teams with responsibility for pensions since Labour came to power in May 1997," explained David Smyth, director of AWD Chase de Vere Consulting. "In that time we've had an endless stream of pension changes, including an overhaul of the pension tax regime, numerous Pensions Acts and significant alternations to state and private pension provision. Now we're awaiting the introduction of Personal Accounts in 2012 with no clear idea as yet of what the final arrangements will be. Previous administrations of whatever political colour have been no better, constantly changing and tinkering with pension regulation."

Smyth said that while the proposals and changes have been constructive and introduced with the intention of improving pension provision, "the road to hell is paved with good intentions, and right now, pension policy is knocking on Hades door".

"Part of the problem is that pensions, whether corporate or personal, are extremely long-term schemes - while governments tend only to think in five-year time horizons. Gordon Brown's initiative to lift interest rate policy out of political control by creating the Monetary Policy Committee of the Bank of England has been a huge success and I think it's time that we considered creating a similar model for pension planning."

He added that a new committee, responsible to the Government, would take the pressure off of making difficult decisions. "I think it is now time for the pension industry and government to sit down to debate the best forum for creating long-term national pension policy - and an independent committee could well be the answer," Smyth concluded.

- Pensions Age June 2009

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