| The government has set
out plans for automatic enrolment into
workplace pensions. The announcement
followed publication of Making Automatic
Enrolment Work, an independent review for
the Department of Work and Pensions, at
the end of October.
The measures are due to start taking
effect from April 2012 and all employers
will be required to automatically enroll
eligible jobholders into a qualifying
pension scheme.
There will be a phased introduction,
with the smallest employers – those with
50 or fewer employees –coming on board
between summer 2014 and early 2016.
Employers will receive reminders of
their new responsibilities 12 months and 3
months before they are due to be affected.
Where the employer chooses to provide a
money purchase arrangement, the minimum
contribution requirements will be phased
in to help both employers and individuals
adjust to the additional costs gradually.
A new workplace pension scheme called
NEST (National Employment Savings Trust).
NEST will be one of the qualifying schemes
and will be open to any employer who wants
to use it to meet their duties.
The move to include all employers has
attracted some criticism for placing an
additional burden on smaller firms. The
Federation of Small Businesses says that
average small firm – those with four
employees earning an average salary of
£25,000 – will pay at least an extra
£2,550 per year in administration and
pension costs.
LINK:
Workplace pension reforms
LINK:
NEST website |
