Industry must press on with automatic enrolment preparations

The Pensions Regulator has said that those working in the pensions sector should not take their foot off the accelerator in their preparations for automatic enrolment.

The Government has today reiterated its commitment to automatic enrolment for all employers and stated that businesses with less than 50 staff would now have longer to prepare - and would begin automatically enrolling their staff in May 2015, instead of the current timing of April 2014.

Bill Galvin, chief executive of The Pensions Regulator, said it would maintain a ‘business as usual’ approach in preparing the pensions market for automatic enrolment.

He said:

“None of the large employers that we’ve already contacted about their staging date will see any changes. Employers with staging dates from August 2013 will receive more information in the new year but will not see major changes in what they need to do. Small and micro employers have longer to prepare but remain within the scope of the new duties.

“There are still major challenges ahead. It’s important that employers, industry bodies, advisers, payroll software providers, and others, keep their foot on the accelerator and do not let preparations slip. We remain committed to providing quality information and support to help businesses of all sizes to get ready.”

• 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.
• In the 2008 Pensions Act, and corresponding Northern Ireland legislation, The Pensions Regulator was given a new statutory objective to maximise compliance with employer duties (including the requirement to automatically enrol eligible employees into a qualifying pension provision and pay a minimum contribution) and with certain employment safeguards.
• From October 2012, large employers will be required to automatically enrol all their eligible jobholders into a qualifying pension scheme and make a minimum contribution of a jobholder's qualifying earnings into the scheme (this contribution will be increased in phases). Eventually, this requirement will apply to all UK employers.
• An eligible jobholder who reaches 22 and who has not reached pensionable age must be automatically enrolled in a qualifying scheme by the employer. Qualifying schemes are pension schemes that satisfy the quality criteria prescribed in the Pensions Act 2008. The criteria establish a minimum standard for the level of contributions made to the scheme or the level of benefit provided.

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