The content on this page is based on the law as it stands today. However, the Government has announced a review of how best to support the implementation of automatic enrolment into workplace pensions and therefore the content is subject to change. The review is expected to conclude by 30 September. Further detail can be found on the DWP website.
What the changes are
The changes from 2012 will encourage more people to save in a pension, and to make it easy for them
to do so.
A major part of workplace pensions reform is the duty on employers to automatically enrol all of their eligible jobholders into a qualifying pension scheme.
Why they are happening
With people now living longer than ever before, the Government has introduced new legislation that will encourage more workers to adequately save for what may well be a long retirement.
Many people aren’t saving enough to give them a reasonable standard of living after they stop working. Some people aren’t saving at all.
The Pensions Act 2008 introduced reforms that will give more people access to good quality pension savings, particularly those on low to moderate incomes.
When it starts
From 2012, employers will be required to automatically enrol all their eligible jobholders into a qualifying pension scheme and make contributions towards it. Each employer will be given a date from when the changes must be in place, which will be known as their staging date.
Where it applies
The Pensions Act 2008 will apply throughout Great Britain. It’s expected that the devolved parliament in Northern Ireland will also pass legislation implementing it there.
All employers must register their schemes with The Pensions Regulator.