12 January 2010
The final rules governing auto-enrolment into workplace pension
schemes from 2012 were laid before parliament today by Work and
Pensions Secretary Yvette Cooper. Ms Cooper said the reforms were
the most radical change to workplace entitlements since the
introduction of the national minimum wage and the fact that
employers of all size would be joining employees in paying into a
pension scheme for the first time was a massive step.
The Department for Work and Pensions said the regulations have
increased flexibility and removed some of the burdens that were
identified, without compromising the intentions or undermining
protection for individuals such as:
- Start-up businesses created from 2012 will be given until 2016
to start enrolling staff
- Businesses employing 120,000 staff start enrolling in October
2012, with smaller businesses phased in over a further period
through to 2016.
- Phasing in employer contributions from one per cent in 2012 to
two per cent in October 2016 and the full three per cent by
2017.
Auto-enrolment will begin as planned in October 2012 and will be
fully phased in by October 2017.
A detailed press release has been put out by the DWP and can be
read here:
http://www.dwp.gov.uk/newsroom/press-releases/2010/january-2010/dwp004-10-120110.shtml
