New Pensions Minister Steve Webb has published the promised review of the scope of auto-enrolment into the National Employment Savings Trust (NEST) workplace pension that is due to be rolled out from October 2012 onwards.
The review will be concluded by 30 September and will be chaired by Paul Johnson, a senior associate at Frontier Economics and a Research Fellow at the Institute for Fiscal Studies.
The review will consider:
- the earnings threshold above which automatic enrolment applies
- minimum contribution levels before auto-enrolment is triggered
- the age bands for auto-enrolment
- whether all firms should have to auto-enroll
- whether postponement of auto-enrolment should be relaxed
- whether the private pension marked can sustain the up to 9m additional pension savers
Whist the Government committed to auto-enrolment in the Emergency Budget, it is sensible to initiate a review that will report quickly on some of the more contentious and complex elements of the scheme. Employers can then begin their planning in earnest from the autumn as this a huge project given that only a third of the workforce have current workplace pension provision.
Kate Upcraft
Payroll writer and lecturer
ISIS Support Services Ltd
kateupcraft@btconnect.com
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