MPs publish report on automatic enrolment in workplace pensions
- Published on Thursday, 15 March 2012 06:46
- Posted by Scott Buckler
The Government should lift two key restrictions on the operation of the National Employment Savings Trust (NEST) as a matter of urgency, according to a report published today by the Work and Pensions Select Committee
Starting in October 2012, millions of employees will be automatically enrolled into workplace pension schemes for the first time. Employers will be required to establish a pension scheme for their staff and they must also make a contribution to each employee's pension.
The Government established NEST as a low-cost pension scheme to help deliver the auto-enrolment programme. However, the Committee believes that certain restrictions placed on NEST will create complexity for employers and will disadvantage some employees.
The Chair of the Work and Pensions Committee, Dame Anne Begg MP, said:
"Auto-enrolment is a welcome reform that will encourage high participation in workplace pension schemes. We welcome the Government’s overall approach and have made several recommendations designed to help make sure the programme is a success.
By lifting these two key restrictions placed on NEST, the Government would remove barriers that might currently prevent employers from choosing NEST as their pension scheme, as well as making it easier for employees to bring together the other small pension pots they are likely to have. This will help reduce the multiple administrative charges that many people pay and help them to understand the total retirement savings they will have built up."