Within this consultation proposals were described to insert a clause in the Pensions Bill to provide regulation making powers to exclude workers of a prescribed class or description from the scope of automatic enrolment. As well as setting out some ideas on how such a power might be used, the DWP asked respondents to tell them if there are categories or descriptions of worker for whom automatic enrolment is inappropriate. The DWP want to offer employers some more flexibility, so that in a limited number of specific situations, affecting only a small number of workers, employers are not obliged to go through the process of automatic enrolment. This will also benefit individuals for whom pension saving is not appropriate, who will not have to go through the process of being automatically enrolled and having to opt out. The consultation looked at a range of proposals to dis-apply the statutory obligation on employers to put certain groups of workers into pension saving. Views were sought on four situations, where further private pension saving may not be in the best interest of a worker. The responses received reinforced representations already made that there is a strong case for government to permit employers not to enrol workers who:
have tax protected status for existing pension savings are on the brink of leaving employment have given notice of imminent retirement recently cancelled membership after being contract joined.
The DWP remain confident that the right to opt out remains the most suitable option for all other workers who do not wish to remain in pension saving.
The next step is to develop proposals for workable exceptions that provide real value for both individuals and employers. Also being considered is how to accommodate circumstances where an employer may not know about the person’s individual circumstances (the tax issues are a prime example). Final proposals will be brought forward, with a draft Statutory Instrument for consultation in due course. Any regulations are subject to Royal Assent for the Pensions Bill currently before Parliament.
Read the full response to the consultation on exceptions to the employer duties.
Automatic enrolment scores 3 million
14 March 2014
More than three million workers have now started saving into a workplace pension scheme as a result of automatic enrolment.
Over 3 million workers have begun saving into a workplace pension scheme as a result of automatic enrolment, according to figures from The Pensions Regulator .
The 3 millionth worker is employed by West Ham United, whose Vice Chairman Karren Brady backed the roll out of the new workplace pension scheme.
This month’s automatic enrolment registration report shows that more than 10,000 employers of all types from charities to supermarkets, hospitals to football clubs have now automatically enrolled their workers.
July 2012 – end February 2014
1. Employers that confirmed to the regulator they have met their duties by registering during the period
10,503
CIPP Policy News Journal
08/04/2015, Page 323 of 521
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