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'Less than a third' of companies ready for pension reforms PDF Print E-mail
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Latest Recruitment News - HR and Recruitment Legislation News
Written by DirectNews Feed   
Thursday, 06 May 2010 00:00
'Less than a third' of companies ready for pension reformsA new study has found that less than one-third of trustees and pensions managers are adequately prepared to implement the pensions changes scheduled for 2012.

In a major overhaul of the country's pensions system, all employers are bound by law to offer a qualifying workplace scheme that implements auto-enrolment for all eligible employees from October 2012.

At least eight per cent of each staff member's qualifying earnings must be paid in to their fund, which is comprised of three per cent employer contributions, four per cent from the employee themselves and one per cent from tax relief.

However, research from Mercer shows that most employers remain unprepared for the changes, despite them being just over two years away.

Geraldine Brassett, principal in Mercer's outsourcing business, said: "The problem is that many employers are unaware of the complexity and detailed implications of the changes that lie ahead

"2012 may still sound like a long way off, but unless they start to prepare soon, many companies may find themselves rushing to meet the deadline."

Posted by Daniel Frost
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