More preparation needed for auto-enrolment, CIPD warns
Employment Law & HR update 06/12/2011
According to the Chartered Institute of Personnel and
Development (CIPD), firms across the UK need to do more to in order
to be fully prepared for pension auto-enrolment.
The body's 'Labour Market Outlook: Focus on 2012 Pension
Changes' report found that, although 75 per cent of employers were
aware of the upcoming workplace pension changes, many information
gaps remain.
Just 32 per cent of employers were aware of the date from which
the new auto-enrolment changes will affect them.
As of next year, there will be a legal obligation for employers
to enrol staff members who are earning over £7,500 and are aged
over 22, into a 'qualifying pension scheme.' The employer must then
make contributions into that scheme.
CIPD Reward Adviser, Charles Cotton, said, “While the ongoing
pressure on employee living costs is of great concern, taking a
short-term view will eventually leave people worse off.
“Employees and their employers need to rise to the challenge
today in order to safeguard the future and although there will be
some short-term cost pressures associated with auto-enrolment
implementation the long term gains and value will be significant,”
Mr Cotton went on to say.
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