Employees earning more than the personal income tax allowance of £7,475 will be automatically enrolled into a pension scheme from 2012.
The threshold is more than £2,000 higher than Labour’s proposal of £5,035 a year. An optional waiting period of three months has been introduced, during which employees can voluntarily opt in. Self-certification for employers operating money-purchase schemes has been simplified, alongside further deregulatory measures designed to reduce the burden on employers. Legal & General pensions strategy director Adrian Boulding, who was part of the independent review team, says: “We are knocking the rough edges off the old proposals.”
For full details, go to www.moneymarketing.co.uk