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Simplification of pension reforms

 

The Government has today confirmed the introduction of major workplace pension reforms from 2012, but there will be simplification and better communication to employers following an independent review.

Automatic enrolment for eligible workers will begin from 2012. However, changes to the plans confirmed today include a three month waiting period before employees are automatically enrolled, giving employers and workers more flexibility and preventing the need to enrol workers who leave quickly after starting employment. There will also be a simpler system for employers to confirm their pension schemes meet required contribution levels. The review also recommended clearer communication to employers in advance of the changes.

However, it decided against major changes to the age or salary thresholds for enrolment, and also ruled out an exemption for micro businesses. Full details of the proposals can be seen here.

To give your view on this, leave a comment on this blog or email ross.smith@necc.co.uk.