White Paper blues
Sir: The article (8 November) entitled `White Paper blues' by Nicholas Davenpon has just been drawn to my attention. 1 must write to express my dismay at some of the Statements in this article attributed to the National Association of Pension Funds and its members.
First, I must rebut the implication in the comparision between 'fair-minded Pro. fessional actuaries who are managers of life companies' and managers of occupational schemes acting through the National Association who apparently do not qualify for this description. I can, however, assure you and your readers that they are equalh fair minded and honest. The National Association is essentially a non-political body and would, I hope, hold the same vim had the scheme been put forward by another party.
Later in the article it is stated that the pension managers through the Nationa Association proposed that the abatement terms should be 14 per cent for contributions and 1 per cent for pensions. While I have no doubt they would have welcomed sue terms, at no time did these terms form pa of any proposal put by the National Associa tion of Pension Funds- to the Secretary o State.
Mr Davenport also states that managers o pension funds are still incensed by the fa that Mr Crossman proposes to escalate th• existing graduated pension. In general t members of this Association were please when Mr Crossman changed his mind. I there was any body which objected to thi change of heart it was the 'Life Offic Association.
Finally, may I point out that the proposa of the National Association of Pensio Funds for a flat rate pension tied to nationa average earnings and supported b graduated contributions, to which referen is made in the final paragraph as thei alternative to the Crossman proposal. du not present the complete• or proper picture The Association agree that there should be state scheme for those not in an occupation scheme and proposed that in addition to th basic scheme to which all employees shout contribute, a fall back scheme should be a ranged by the state for those who were n members of occupational schemes. This pr posal was made quite clear in the docume published in July of this year.
The article by Nicholas Davenport d not treat fairly the Association and members and I hope that you will accord the privilege of pointing out this fact to Y0 readers.
1. H. Hubert Nut! Chairman, The National Association Pension Funds, 14 Queen Anne's Gate, Lo don swl
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