Introduction to auto-enrolment
The Pensions Act 2008 set out a fundamental reform of workplace pensions, requiring every employer to automatically enrol their employees into a qualifying pension scheme, if they are not already in one, and contribute to that pension. These reforms will be introduced over a period of four years, starting from 2012. From October 1, 2012, enrolment in a company pension scheme will become an opt-out process for eligible employees in the UK, which marks a step-change in the way that pension schemes are administered in the workplace. It is hoped that this change in legislation will overcome the current poor take-up of company pension schemes.