1 November 2010 – The government announced on Wednesday 27 October, its response to the independent review on auto-enrolment work. The personal accounts regime introduces, from October 2012, compulsory employer pension contributions for the first time. The National Employment Savings Trust (NEST) is the government approved savings vehicle. The main points from the review are
- NEST survives as the default provider
- An optional three month waiting period for auto-enrolment rather than the first day of employment
- A relaxation in the minimum level of earnings required for automatic enrolment from £5,035 to £ 7,475 to align it with the personal allowance for income tax
Martin Scott, partner in the Mayer Brown Pensions Group, said: "NEST still has wings. The relaxations in the earnings threshold and the three month period of grace will be welcomed by small employers. Challenges, however, still remain. Employers should now focus on how they are going to comply with the personal accounts regime."
For further information:
Senior PR & Marketing Manager, London
+44 20 3130 8547