The National Association of Pension Funds is calling for a delay to the 2017 review of auto-enrolment, following the Government’s decision to postpone the extension of the scheme for small businesses.
Any employer that is expecting to auto-enrol their staff after July 2013 could see their staging date pushed back. This could include businesses with up to 3,000 employees.
The introduction of the full 8 per cent contribution rate will also be delayed. The Government says it will set out new dates early next year.
All businesses were due to have implemented auto-enrolment by 2016, with the review due the following year.
Giving evidence to the work and pensions select committee last week, NAPF chief executive Joanne Segars said the delay could mean small firms do not have auto-enrolment in place until 2019. She said: “We do not know when this review will take place now. The finish date for auto-enrolment will not be until 2018 or 2019. It would seem odd to us to do a review in 2017 before everybody is through that process.”
A Department for Work and Pensions spokeswoman says: “We are working through the detail of the new implementation approach and will provide full details of how it will change existing plans in January.”