Subject of Consultation
The consultation concerns the practical arrangements by which employers will be required to:
- enrol workers into a workplace pension scheme, including the circumstances and arrangements for postponement of automatic enrolment, where appropriate;
- the information which employers are required to provide to their workers and to pension schemes; and
- the arrangements by which individuals can opt out of pension saving following automatic enrolment.
The Pension Regulator powers are also being consulted on. The Pensions (Automatic Enrolment) Regulations 2009 are scheduled to come into force from 2012.
Duration of the Consultation
The consultation period begins on 12 March 2009 and runs until 3 June 2009.
Background
The Pensions Act 2008 requires employers to automatically enrol eligible jobholders into qualifying workplace pension saving, with a minimum employer contribution. Individuals who decide that they do not want to participate in pension saving have the right to opt out. The Act sets out which jobholders will be eligible for automatic enrolment.
Employers will be free to choose the qualifying workplace pension scheme or schemes they adopt to discharge this new duty.
Consultation
The consultation looks at the following matters:
Enrolment and joining process
- Deduction of contributions
- Enrolment information provided by employer to pension scheme and jobholders
- Opt out procedures
- Postponement of the automatic enrolment date
- The Pensions Regulator compliance regime including delegation of its powers and appropriate safeguards.
The consultation can be found on the DWP website.
