Government to reform pensions law

News Article - 07 July 2010
Category: Business

The Government has outlined plans to reform the pensions system in an effort to 'reinvigorate retirement.' Iain Duncan Smith and Steve Webb from the Department for Work and Pensions said the plans, designed to fundamentally 'repair' Britain's pension system, would be underpinned by automatic enrolment into workplace pensions, which will start being enforced from 2012.

An independent review of auto-enrolment and the best ways to make it work will take place before September 2010; this will include considerations on the employee threshold that will require companies to participate in the scheme.

Industry experts are already warning companies of the considerable planning needed to meet compliance regulations concerning the auto-enrolment scheme and similar pensions reforms. Businesses will need to analyse the potential impact on wider remuneration costs and ensure the necessary assets are in place.

A senior consultant at Mercer has said the auto-enrolment plans are unlikely to be changed, and that any changes will be in the finer details rather than in the overall scope of the plans. Large and medium-sized employers must have sufficient information to start working on implementation plans, as the Government has firmly committed to the 2012 date for introducing the auto-enrolment scheme.

Reforms of the pensions provisions are also likely to have an effect on how employees view different stages of their careers. When the mandatory retirement age is abolished, workers will enjoy more career choice and the option to continue working later in life. With this in mind, many may take earlier and longer career breaks in order to concentrate on family life or travel.

Employers must be prepared for both the compliance regulations associated with pensions reform and also the wider effect on staff needs. Access HR and payroll software can assist in two ways; firstly, regular and comprehensive updates ensure businesses are fully compliant with employment law. The learning and development module also enables the management team to communicate more effectively with staff members by allowing full online feedback to be provided by staff and acted upon easily. This gives employers a greater understanding of how staff feel about important career choices, and allows them to more efficiently provide mutually-acceptable working arrangements.

For more information, please call Access on 0845 345 3300.

Article keywords: government news, pension, midmarket, business software, pensions, compliance and regulation

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »