This bill implements the reform enacted two years ago (Pensions Act 2008) to boost private savings, notably via automatic enrolment to professional pensions schemes. If businesses don’t create their own fund, they may use the National Employment Savings Trust, a defined contribution pension scheme. Employers will pay a minimum of 3% contributions and employees 5% of their salary. The latter may leave the pension scheme if they wish. At the request of employers (see our dispatch No. 100613), the government accepted to introduce this measure after the worker has been employed for three months, to avoid administrative charges for people employed for a short period. It also accepted to increase the remuneration level entitling to automatic enrolment. Therefore, enrolment concerns workers aged 22+ and earning over £7,475 (€8,827). However, all employers are concerned by this law – SMEs aren’t exempt, as they requested.
uest of employers (see our dispatch No. 100613), the government accepted to introduce this measure after the worker has been employed for three months, to avoid administrative charges for people employed for a short period. It also accepted to increase the remuneration level entitling to automatic enrolment. Therefore, enrolment concerns workers aged 22+ and earning over £7,475 (€8,827). However, all employers are concerned by this law – SMEs aren’t exempt, as they requested.
Boost private s
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