Brexit & EconomyPoliticsOffers to opt out banned under pensions bill changes

Offers to opt out banned under pensions bill changes

Employer offers to staff to opt out of company pension schemes will be banned under pensions bill changes

The Department for Work and Pensions (DWP) plans to make the changes to the
Pensions Bill, introducing minimum employer and staff contributions from 2012 in
a bid to encourage more workets to save for their retirement by automatically
enrolling them in workplace pension schemes.

Mike O’Brien, minister for pensions reform, said the government wanted to
prevent employers from trying to pressure staff or tempt them with ‘live for
today’ inducements into opting out of pension saving.

A DWP spokesman told The Daily Telegraph ‘anecdotal evidence’
indicated employers were using cash inducements to tempt employees out of costly
company pensions and officials believed the practice could become more common
from 2012 as companies sought to avoid the cost of increased employer
contributions.

Any company caught flouting the rules by the new Pensions Regulator could
face the cost of putting staff back in the pension scheme, pay arrears and also
a fine. The DWP said it would introduce a time limit for complaints against
employers and investigations to discourage ‘the possibility of frivolous claims’
by staff.
Further reading:

Pension funds heading for buyout deals

Read
The Daily Telegraph story

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