The Personal Accounts Delivery Authority (PADA) has announced the development of a 'myth busting' programme to clarify aspects of the 2012 changes to the pensions landscape.

The initiative will consist of ongoing meetings with pension advisers, trade bodies and employers which aim to explain the key features of the new pension scheme, and to dislodge misunderstandings about its role.

PADA said some of the misunderstandings surrounding the Personal Accounts scheme relate to the belief that it is a government pension scheme, it is the name for the Government's workplace pension reforms, and that it will compete with existing schemes.

"It's recognised that there is a lack of workplace pension provision for low-to-moderate earners - the personal accounts scheme can fill this gap and will be low cost because of economies of scale which is critical for our target market," commented Paul Gilbody, head of product and market engagement. "There are also other potential uses for larger employers - such as an entry scheme in sectors with high early turnover. We want to talk to the experts in the industry about how the scheme can be best used."

Gilbody, who heads PADA's market engagement team, added that the non-departmental public body, which was established specifically by legislation to introduce the Personal Accounts scheme, is clear on its mission to produce a scheme for its target market. "This will be reflected in its investment strategies (particularly in relation to the default fund), how people access their savings in retirement and how the scheme works for employers. We want to work with the industry to help us achieve the best outcome for our potential members and to help millions save for their retirement."

The 'myth buster' and key facts are available to download here.

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