ActivHR Consulting Ltd
Simplify auto-enrolment?
Tuesday, 12 March 2013 10:37
Government plan consultation to look at simplifying auto-enrolment.

It has been announced this week that the government are set to consult on a range of proposals aimed at simplifying pension auto-enrolment.

The aim of automatic enrolment is to make it easier for people to save for their retirement and will be rolled out in stages.  

Feedback received since the implantation of auto-enrolment amongst larger employers has led the Department of Working Pensions (DWP) to draw up a shortlist of practical and technical improvements which could be made to help simplify the process.

The consultations, which are said to be launching next month, will give employers and the pension industry to give their views on these proposed changes which include:

•  Making assessment of the workforce easier
•  Making it easier for money purchase schemes to show they meet the scheme quality requirements
•  Removing the duty to enrol particular groups, such as those who benefit from protection, because they already exceed the lifetime allowance for tax purposes

Steve Webb, minister for pensions, commented on these plans saying “We’ve been listening to the experience of employers that have enrolled their workforce so far and recognise that some parts of the process could be improved.

By consulting on these changes we can address this before automatic-enrolment is rolled out to small and medium-sized businesses. We don’t want to make changes to legislation lightly, but we do want to make sure that automatic-enrolment is working as well as possible.”