By Sarah Toyne BBC News Online personal finance reporter

Adair Turner is also chairman of the Low Pay Commission

Making occupational pensions compulsory may not be necessary or desirable, says the man appointed to make a root-and-branch review of UK pensions.

Adair Turner will chair the Pension Commission, which the government has set up to investigate pensions and long-term savings in the UK.

One of the main aims of the commission is to look at whether occupational pensions should be compulsory, in some form or another.

Commentators have seen this as a shrewd way of the government approaching the sticky issue through the political backdoor.

But Mr Turner, speaking to BBC News Online, said the commission had not been told by the government that compulsion was its preferred answer.

Commission will focus on Demographics Present, and possible evolution of, retirement behaviour and trends Present saving behaviour Influence of state pension for private savings Private pension scheme costs Adequacy and expectations Macro-economic issues Pensions or savings gap

He says: "We are open minded that it could be a possible answer, but open-minded that it may not be necessary or desirable."

Mr Turner said there were "quite a lot of half-way stations on compulsions" and there were a a lot of different approaches to the idea to investigate.

For example, should it be compulsory for an employer to contribute or the employee.

Or, should the employer compel an employee to join its pension schemes, as used to be the case.

"We are an independent commission and we will come up with recommendations that reflect the views of the commissioners," says Mr Turner.

Savings gap

The concept of a �27bn savings gap in our retirement saving, has become one of the most quotable figures over the last year, as pensions have moved up the news agenda.

We have to look at the state pension because it may have implications for private pensions Adair Turner

Mr Turner, who runs the Low Pay Commission, and is vice- chairman of Merrill Lynch Holdings, says whether people are saving enough for retirement could depend upon the concept of what people will need when they retire

He said the commission will look at it through the concept of "adequacy".

For example, it will consider whether other forms of capital, such as property, could be a source of income in retirement.

"Some people would argue that the situation with the savings gap is less severe than suggested because people have significant assets in their houses...We have to consider whether that is legitimate."

State pension

The commission is not supposed to be looking into the state pension, but Mr Turner said it is necessary to understand the impact of the state system on private savings.

"We have to look at the state pension because it may have implications for private pensions," says Mr Turner.

He says it is "clearly necessary" for the commission to understand how the state system works, both in terms of its "positive" and complicating aspects".

The commission, however, cannot make recommendations to the government on the issue.

It is hard to think the government will welcome Mr Turner's investigation, especially when its biggest project - the Pension Credit is on the horizon this October.

But many others in the pension industry believe there is a need to undertake a full review of the pensions and savings system in its entirety - state pensions et al.

UK Pensions in Crisis Find out more on pensions from BBC News Online's pensions website Click here to read more

And this is what Mr Turner's commission, which also includes Jeannie Drake, deputy general secretary of the Communication Workers Union and Professor John Hills of the London School of Economics has decided on.

Safety valve

The commission will publish an "interim" report next year.

Its first full report, which will contain its initial proposals, will be published the in Summer 2005.

Two years is needed for such a comprehensive look at pensions and savings, says Mr Turner.

It will also mean it can review the impact of the green paper - and how means-testing is influencing savings behaviour.

In the meantime, the commission has created its own "safety valve" or "catch all", a platform which will allow it to speak out - if necessary.

There is a chance this could come sooner than later, if the closure of final salary pension schemes continue apace.

Mr Turner has already made his views clear on this issue - and has ticked-off companies for being too quick to close schemes, at the expense of more innovative solutions, such as hybrid schemes.

Occupational pensions are changing in ways that may not be reversible, he says, but it is early days to know what can be done about it.

One factor is certain, though. Mr Turner's investigations will be keenly watched - if not all welcomed be government.