Automatic Enrolment into workplace pensions
The House of Commons Work & Pensions Select Committee have today published the findings from their inquiry into automatic enrolment into workplace pensions and the National Employment Savings Trust (NEST).
The main points of their recommendations are:
- The cap on annual contributions and ban on incoming transfers into NEST should be removed as a matter of urgency, if state rules allow.
- The Government should act quickly to introduce a simpler, flat-rate state pension to remove any disincentive to save caused by means testing.
- Pension providers should show charges clearly and transparently and there should be a 'price comparison' website for pension products set up, similar to those for some insurance products.
The committee does not support calls for smaller employers to be exempt from the requirement to automatically enrol their workers into workplace pensions.