Timetable change announced for pension auto enrolment
Employment Law & HR update 29/11/2011
Whilst auto enrolment for pensions is still scheduled to be
introduced as planned, small businesses will be given more time to
prepare.
The government has confirmed that autumn 2012 will see the auto
enrolment scheme begin, and it will apply to firms of all
sizes.
However, the timetable will be altered to ensure that no small
employers are affected by the changes before this run of Parliament
ends.
In a measure that will be positive for all employers, pension
contributions will remain unchanged until all businesses have begun
auto enrolment.
Under the new timeline, instead of automatically enrolling staff
at small firms in April 2014, this will be delayed until May 2015.
Meanwhile, 50 per cent of all employers will still be auto enrolled
prior to the end of this run of Parliament.
Steve Webb, minister for pensions, said, “Our society and
economy needs to be based on a foundation of saving, not debt.
Automatic enrolment will help millions save, and to not act will
leave people poorer in retirement.
“We recognise that small businesses are operating in tough
economic times so we are softening the timetable for implementation
to give them some additional breathing space. This is a sensible
step that ensures long term pension issues are addressed while
meeting the short and medium term needs of small business,” he
added.
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