Auto-enrolment good for staff May 2011
Posted date: 19 May 2011
Auto-enrolment is better for employees than employers, according to a poll carried out by Jelf Employee Benefits.
At a seminar held today at London Zoo, just under half of attendees voted that the Government’s plans for entering staff into a pension scheme was positive for employers, while 36 per cent said that it was not. Conversely, the huge majority, more than 90 per cent, said that they thought that auto-enrolment was good for employees.
The event featured a session from Steve Webb, Pensions Minister, who outlined the Government’s plans to allow the largest employers to begin auto-enrolment from July 2012, with the official system taking effect from October 2012.
The policy will mean that all employees will be entered into a pension scheme once they have been at a company for three months and they meet all of the other criteria, such as earning over the tax threshold.
The plan is to be phased in over a period of four to five years, starting with the largest employers first. Contribution levels will also be gradually increased to the minimum level, which is eight per cent.
Webb believes that in order to make sure that employees have sufficient funds available to them when they retire they should be encouraged to contribute more than the minimum.
He commented: “We want a decent, firm, clear state foundation, with as many people as possible in private pensions.”
The seminar also tackled other issues such as changes to employment law and, in particular, a focus on the abolition of the default retirement age. Tim Randles from Penningtons outlined the latest case law and gave his opinion about the Government’s current consultation on employment law.
Steve Herbert, Head of Benefits Strategy at Jelf Employee Benefits, concluded the event by explaining the main issues facing employers at the moment and warned employers to put in place plans to deal with the abolishment of the default retirement age for future retirees.
Natasha Edward, Head of Human Resources at Hearing Dogs for Deaf People, commented: “It’s making the changes clear to understand and outlining the key elements that employers need to know about. The live polls were really useful for helping to understand and gauge where other employers’ concerns lie at the moment.”
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