|
|
Employers may not be able to offer pensions opt-out
Posted by peopleperhour.com -
25/06/2008 13:50
|
|
Proposed changes to the Pensions Bill will see employers no longer able to encourage or force their workers out of a workplace pension scheme.
The change will also prohibit the offer of inducements such as bonuses or higher salaries to encourage those in work to not enter a work pension scheme.
Minister for pension reform Mike O'Brien said: "It is very important that people are allowed to meet their retirement expectations by building up the savings they need.
"Whilst it may seem attractive in the short term to accept an inducement to opt out, when people reach retirement with a lower pension, they're likely to regret taking the easy option."
Automatic staff enrolment onto a scheme will also require employers to provide a minimum contribution of three per cent, if the bill passes.
The Department for Work and Pensions says that if the scheme goes ahead, they will have the power to force companies to pay in arrears any amount due if they coerced staff into opting out.
|
| |
| Please Login to post your comments >> |
| (Not registered yet? Register now) |
|
| Posted Comments: |
|
|
|
Get Started Now! |
FAQs |
|
| PeoplePerHour.com enables small businesses in the UK to outsource work to freelance providers |
 |
 |
| How it Works >> |
| With PeoplePerHour.com you can |
| Hire Freelance experts |
| Manage projects to completion |
| Pay securely |
| |
| |
News Updates By RSS |
|
 Subscribe to Our RSS Feeds |
| Select your chosen web-based news reader from the list below: |
 |
 |
 |
 |
 |
| |
|