Pension Reforms: Auto-Enrolment
This is a process whereby employees are automatically entered into a pension scheme without any form of application on their part. Many employees fail to join valuable pension schemes where they first have to initiate an application process. Auto-enrolment is meant to overcome this obstacle.
When the pension reforms are introduced in April 2012, all eligible employees will have to be auto-enrolled in a qualifying pension scheme. Employers will be able to choose which qualifying scheme to use, including the new personal accounts scheme. Each qualifying scheme must meet minimum standards, either of the benefits it provides or the amount of contributions paid to it, and it must also provide auto-enrolment for all eligible employees who have not already joined the arrangement and for all new employees when they become eligible.
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