Delay in Auto-Enrolment
The Chancellor’s rethink puts back plans for pension auto-enrolment for small firms.
Businesses with fewer than 50 workers have a further year to prepare and implement the Government’s pension reforms known as auto-enrolment.
Fearful of placing additional burdens on firms who are seen as key to a recovery, the Chancellor’s announcement could save those businesses £1/4 billion. George Osborne’s statement delays the ‘staging date’ by a year, to 2015, but does not change the implementation for larger firms who must provide qualifying pensions from Oct 2012.
The Pension Minister confirmed it means that small firms will not start enrolling workers until the start of the next Parliament and insisted auto-enrolment remained a positive programme of pension reform.
the revised plans will still result in more than half of all workers enrolled before the end of this Parliament
Stephen Webb, Pension Minister
The National Association of Pension Funds CEO, Joanne Segars, however expressed disappointment,
Businesses will quite rightly be wondering how much faith they can have in the system, and whether more changes are in the pipeline.
Coroni’s Reflex application includes a Pension auto-enrolment module which identifies eligible workers, gives them an enrolment opportunity, applies defaults according to pension legislation and re-enrols workers at appropriate time.