Pensions - Articles - Govt to introduce further protection for auto enrolment


 The Government will ensure that transitional arrangements designed for companies with defined benefit or hybrid pension schemes are only used for workers that have access to defined benefits.

 Current rules allow companies with defined benefit or hybrid schemes to defer automatically enrolling existing staff until 2017. This is because the funding requirements for these types of schemes mean employers cannot take advantage of phasing-in of contributions, as can employers using a defined contribution scheme.

 The Government is acting to put beyond doubt its intention that people with access solely to a defined contribution pension do not have their automatic enrolment deferred, even if they are in a hybrid scheme.

 An amendment to the Pensions Act 2008 will tighten the rules, ensuring that only employers offering defined benefits to a jobholder - whether in a defined benefit or hybrid scheme - will be able to defer automatic enrolment until 2017. Under the change, all eligible jobholders who do not have access to defined benefits must be automatically enrolled from their staging date.

 Minister for Pensions Steve Webb MP said:

 "Automatic enrolment is the most significant reform to pensions for a 100 years and will help up to 11 million people without a pension to start saving into one.

 "It’s vital that firms comply with the spirit as well as the letter of the law. I’m sending out a clear message that all workers should be allowed to save for their retirement as soon as possible.

 "With more and more of us living longer, starting early to build a decent pension pot is more important than ever. We’re taking the hassle out of saving in a pension."

 The Government's move comes ahead of a new wave of workers - in firms with 30,000-49,999 staff - being automatically enrolled into a company pension scheme for the first time in January 2013.

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.