Pensions reform

Around half the population are either not saving into a pension at all or not saving enough for a decent retirement income. The Government is therefore introducing major changes to UK pensions. From 2012 every employer will have to automatically enrol their workers into a workplace pension and, for the first time, employers will be required by law to contribute to their workers’ pensions.

Employers will only have to automatically enrol those workers who:

• are not already in a workplace pension scheme;
• are at least 22 years old;
• have not yet reached State Pension age;
• earn more than the minimum earnings threshold (likely to be £7,475 a year); and
• work or ordinarily work in the UK (under their contract).

The timing depends upon the size of the employer. Very large employers are doing it first, in late 2012 and early 2013. Other employers will follow during 2013 - 2016. 

The pension scheme, into which workers must be automatically enrolled, must satisfy both the automatic enrolment criteria as well as the qualifying criteria. Broadly these mean the employer must make minimum contributions to the scheme and there can be no scheme provision which acts as a barrier to automatic enrolment. The scheme also must not require the jobholder to do anything or make any decision prior to joining.

To fulfil their duties many employers will have to set up a new qualifying scheme. It is important that they obtain professional advice in doing this. Many of our members provide pension arrangements that can meet the requirements, and we have collated, below, contact details where employers can obtain more information:

• AEGON
http://www.aegon.co.uk/industry/index.html

• Aviva
0845 300 1964

• B&CE
01293 586 666

• Fidelity
Daniel Smith
+44 (0)207 961 4523
Daniel.Smith@fil.com

• Friends Life
Catherine Durant
Corporate, London
Executive Client Relationship Manager
Catherine.durrant@friendslife.co.uk
07711 208190

Ed Knott
Corporate, London
Executive Client Relationship Manager
Edward.knott@friendslife.co.uk
07977918856

• Legal & General
Helen Buchanan
helen.e.buchanan@landg.com

• Prudential
Corporate Solutions
email: Corporatesolutions@prudential.co.uk
telephone: 0118 968 6951
post: Prudential, Stirling, FK9 4UE

• Scottish Life
http://www.scottishlife.co.uk/scotlife/web/site/Employer/Employers.asp

• Scottish Widows
http://www.scottishwidows.co.uk/pensionsreform/employers 

· Standard Life
Standard Life Corporate Solutions
0845 278 5630

Further information

You can find further information about the workplace pension reform and automatic enrolment by clicking on the following links:

Workplace pension reform

Automatic Enrolment and Workplace Pension Reform – the facts

The Pensions Regulator

Directgov