Policy News Journal - 2015-16

 Choose a pension scheme page : The content has been updated to better target small and micro employers  Quick guide to selecting a pension scheme for AE : This is a new guide, aimed at a ‘novice’ audience, and intended to be a practical guide to assist employers in using the ‘How to find a pension scheme’ webpage  How to find a pension scheme : This page includes the options available, and now includes a list of schemes with master trust assurance who have confirmed that they are open to small employers. Speaking about the announcement, Karen Thomson, Associate Director of Policy at the CIPP, said “Many small employers have felt TPR should provide some help on what they need to consider when choosing a pension scheme, so these tool kits are welcomed by the CIPP. However, we still urge employers where they are unsure to seek advice from their agent's pension advisors or from Independent Financial Advisors.” In January 2014, the CIPP launched friends of automatic enrolment to assist small businesses in meeting their obligations with regards to the complex pensions legislation. TPR have attended various CIPP friends of automatic enrolment meetings across the UK at which small employers have asked for support in understanding their obligations, including today’s meeting, at which TPRs CEO Lesley Titcomb is speaking. We are delighted that they have listened to this feedback and introduced new tool kits.

To join the CIPP’s friends of automatic enrolment for free, visit www.friendsofae.org.uk

Workplace pension saving at a 10-year high 20 July 2015

With the introduction of automatic enrolment workplace pension participation has rocketed to its highest level in a decade with young people and those in lower paid jobs among the biggest winners.

New figures from the Office for National Statistics (ONS) have revealed that overall, 70% of eligible employees – 13.9 million people – paid into a workplace pension in 2014, a 15 percentage point increase in just 2 years.

Young people in the private sector in particular have enjoyed a remarkable boost to their future retirement prospects, with more than half now saving. The 54% of 22 to 29-year-olds who made regular contributions in 2014 is more than double the 2012 figure of 24%. Bar staff, sales staff and workers in lower paid jobs are all benefiting too, with ever increasing numbers paying in. It is a further sign that the automatic enrolment pension reform is turning around the long-term decline in people who are saving for the future.  those earning between £10,000 and £20,000 saw the largest increase between 2012 and 2014, more than doubling from 21% to 50%  the participation rate for staff in hotels, restaurants and bars is now running at 59% – up 31 percentage points in just 2 years  the energy and water industry has the highest participation rate, with 83% of workers now paying into a workplace pension, an increase of 18 percentage points since 2012  73% of women and 68% of men are now paying into a workplace pension, up by 15 and 16 percentage points respectively since 2012 The automatic enrolment process has been completed by large and medium-sized employers, and is now rolling out to small and micro firms the length and breadth of the UK. All employers have to offer their eligible staff access to a pension scheme, regardless of how many people they employ. So far nearly 5.3 million people have been enrolled by more than 50,000 employers. The workplace pension participation rates from the ONS also showed that:

Read the latest ONS automatic enrolment statistics

TPR Annual Report and Accounts 2014-2015 21 July 2015

The Pensions Regulator (TPR) annual report shows that analysis of ultimate compliance rates for employers reveals 99% of eligible jobholders have been automatically enrolled into a qualifying scheme.

CIPP Policy News Journal

25/04/2016, Page 325 of 453

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