Recruiters call for six-month qualifying period for auto-enrolment
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The Recruitment and Employment Confederation is calling for a six-month qualifying period for temporary workers before they are auto-enrolled into a pension scheme.
In its response to the Workplace Pension Reforms review, REC director of external relations Tom Hadley says: “Our central request is that there is a qualifying period of six months for a company pensions scheme.
“If workers are only completing temporary work for a few weeks, for example whilst they are looking for a new job, the bureaucracy involved in setting up a new pension scheme for the worker is not off-set by savings benefits.
“The REC is calling on the Government to seriously review how the new obligations to automatically enrol workers into a pension scheme will impact the temporary jobs market. “We all agree that it is important that we increase pension savings levels, but the way in which temporary workers save needs simplifying.”
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Readers' comments (1)
Julian Stevens | 10 Aug 2010 5:07 pm
I am all for encouraging people to make provision for financial independence in later life, but auto-enrolment into a retirement savings framework as intimidatingly complicated and as generally unpopular as the one we have now is not the way to go about it.
With only a couple of new innovations (principally the removal of GAD Rates from the retirement income equation), much of what is needed could be achieved simply by restoring most of what Labour scrapped.
The aim would be to make pension plans so attractive and so easy to understand (only minimally more complicated than ISA's should be the aim) that it would be simply stupid not to contribute to one. Most of us who contribute to a pension plan do so not because we think they're great but because we fear the consequences of not doing so. That needs to be addressed and so far I see the new government failing to do so.
Carrot is almost always better than stick. Also
Our lives are frittered away in detail. Simplify, simplify! [H. D. Thoreau].
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