Pensions Regulator helps build employer confidence in talking to employees about pensions

As part of an ongoing campaign focused on addressing the risks facing defined contribution scheme members, the Pensions Regulator and the FSA have today jointly published a new information leaflet for employers – 'Guide for employers: talking to your employees about pensions'.

The leaflet sets out questions that employers may be asked by their employees about pensions and suggests answers and other sources of information that employees can refer to. It will be relevant to employers with DB, DC and contract-based schemes.

The leaflet does not increase the responsibilities on employers but encourages them to look at the activities they can do voluntarily, at little or no cost, to help their employees to get greater value from the scheme.

The Pensions Regulator and FSA have come together to publish this information with a shared belief that more engaged and confident employers can better support employees in planning for their retirement.

David Norgrove, Pensions Regulator chair says: “As DC becomes a more prominent part of the pensions landscape; more members will bear a greater direct responsibility for the outcome of their savings. We expect that employees will approach their employers for information and support - as we know employees consider their employers to be a trustworthy source of information about pensions. Our aim is to help employers build confidence in talking about pensions – without worrying about breaching rules on financial advice.

“We hope that this will encourage all employers to talk more openly and comfortably about pensions - as part of the preparations for 2012 when they will have a legal duty to enrol their employees into a qualifying pension scheme and will need to be much more engaged with the pensions they provide.”

1. This leaflet forms part of a campaign to focused on addressing the risks facing defined contribution scheme members. This is focused on improving standards in pre-retirement literature, improving member communications and encouraging employer engagement.
2. Previous publications include:
   • a guide for trustees to give to members published in July, which set out member options at retirement
   • a statement to those running and managing DC pension schemes, which set out our approach to DC and our expectations of trustees, advisers and employers.
3. The Pensions Regulator is the regulator of work-based pension schemes in the UK, with objectives to protect members' benefits, promote good administration and reduce the risk of calls on the Pension Protection Fund. Our approach is risk-based focusing on education and enablement, with enforcement where appropriate. We have the ability to:
   • collect information about pension schemes; through scheme returns, under the scheme funding regime and as well as statutory (including whistleblowing) reports;
   • issue notices requiring actions to tackle non-compliance, prohibit trustees who are judged not fit and proper to carry out their duties or appoint independent trustees;
   • direct pension schemes as to how to calculate their liabilities and the contributions required;
   • issue a contribution notice where there is an attempt to avoid liabilities, or a financial support direction where the employer is a service company or insufficiently resourced.

• Ruth Hallam 01273 627752
• Katherine Long 01273 811859
• Veena Mapara 01273 627611
• Out of hours 01273 648496
  
  http://www.thepensionsregulator.gov.uk/

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