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Employees to be compelled to join schemes

Employers should be allowed to make membership of their pension scheme a compulsory condition of employment according to the Pickering.

The Pickering report says this provision should include traditional final salary and money purchase occupational schemes, stakeholder, personal pensions and group personal pensions.

However the employer will only be able to make membership compulsory if it is making a contribution of at least 4 per cent of the employees pensionable salary.

The move turns back the clock to pre-1988.

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