Automatic enrolment analysis published
Tuesday 30 July 2013
The Pensions Regulator today published its first in-depth analysis of the initial implementation of automatic enrolment.
Automatic enrolment: commentary and analysis provides an overview of the regulator’s work to prepare employers for the changes in workplace pension law. The report includes information on the first six months of automatic enrolment from October 2012 to the end of March 2013 - which has mostly affected the UK’s largest employers.
View automatic enrolment: commentary and analysis in our section on research and analysis.
- From October 2012 to March 2013, 83 employers completed declaration of compliance (registration), rising to 1,153 as of July 2013.
- Awareness of the changes in the workplace pension law increased significantly between Spring and Autumn 2012 and was high among all sizes of employers.
- The Pensions Regulator website received more than 320,000 unique visits to the automatic enrolment pages, mostly with regards to staging dates.
- The regulator’s customer contact centre received nearly 8,000 telephone calls, 5,000 emails, more than 2,000 web forms, letters and faxes and had 600 face to face meetings.
Charles Counsell, the regulator’s executive director for automatic enrolment, said:
“This report reflects our desire to provide frequent, authoritative information and analysis to clearly set out the impact of automatic enrolment.
“In the last month we have announced that more than one million more people are saving into a workplace pension as a result of automatic enrolment. To date, more than a thousand employers have successfully completed the declaration process.
“So far the implementation of automatic enrolment has gone well. Our focus ahead is to ensure that organisations with less experience of pensions are ready for their new duties. In the first few months of 2014, tens of thousands of employers will be implementing automatic enrolment. As today’s report shows, awareness and compliance among large employers is near universal and we want to see this mirrored among medium sized and smaller employers.”
The Pensions Regulator plans to make this an annual publication. This will be in addition to monthly declaration reports, and surveys tracking employer and intermediary readiness.
- The Pensions Regulator is the regulator of work-based pension schemes in the UK. We have objectives to: protect members’ benefits; reduce the risk of calls on the Pension Protection Fund (PPF); and to promote, and to improve understanding of, the good administration of work-based pension schemes.
- 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.
- Beginning in October 2012, employers will be required to automatically enrol their eligible jobholders into an automatic enrolment pension scheme and make a minimum contribution of a jobholder's qualifying earnings into the scheme (this contribution will be increased in phases).
- An eligible jobholder who reaches 22 and who has not reached pensionable age must be automatically enrolled in an automatic enrolment pension 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.
Rebecca Sandles 01273 811870
Ciara Bridge-Butler 01273 662018