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| Version 1 | Version 2 |
|---|---|
| Automatic enrolment: Deadline shift for pension reform | Automatic enrolment: Deadline shift for pension reform |
| (about 1 hour later) | |
| Full implementation of a scheme to automatically enrol workers into a pension scheme will be in place three years later than originally planned. | Full implementation of a scheme to automatically enrol workers into a pension scheme will be in place three years later than originally planned. |
| A new timetable published by the Department for Work and Pensions (DWP) confirms that the minimum level of contributions will be phased in by October 2018. | A new timetable published by the Department for Work and Pensions (DWP) confirms that the minimum level of contributions will be phased in by October 2018. |
| The system aims to encourage workers to save for retirement. | The system aims to encourage workers to save for retirement. |
| It starts in October, beginning with the largest employers. | |
| Workers will automatically be put into the staff pension scheme, or one backed by the government, unless they specifically opt out. | Workers will automatically be put into the staff pension scheme, or one backed by the government, unless they specifically opt out. |
| 'Burden' | 'Burden' |
| Businesses face two deadlines. The first is for the auto-enrolment system to get under way. | Businesses face two deadlines. The first is for the auto-enrolment system to get under way. |
| All existing firms will have enrolled their staff by April 2017. It will be phased in from the largest firms starting in October to businesses with fewer than 30 employees being the last required to sign up. Newly set-up firms must enrol staff by February 2018. | |
| "Automatic enrolment will begin on time this October, taking up to 10 million people into pension saving, many for the first time ever, and all employers will be part of it," said Pensions Minister Steve Webb. | "Automatic enrolment will begin on time this October, taking up to 10 million people into pension saving, many for the first time ever, and all employers will be part of it," said Pensions Minister Steve Webb. |
| "We have done all we can to ease any burden on business the reforms will bring and employers of all sizes now know the date they need to start enrolling their staff." | "We have done all we can to ease any burden on business the reforms will bring and employers of all sizes now know the date they need to start enrolling their staff." |
| 'No more delays' | 'No more delays' |
| The second deadline is for employers and employees to reach the statutory minimum level of contributions put into the pension pot. | The second deadline is for employers and employees to reach the statutory minimum level of contributions put into the pension pot. |
| Businesses and employees will usually have about 15 months to build up to the minimum level of contributions. Initially, this was supposed to be in place in 2015. The last published timetable suggested this would be in place by October 2017, but now the deadline is October 2018. | Businesses and employees will usually have about 15 months to build up to the minimum level of contributions. Initially, this was supposed to be in place in 2015. The last published timetable suggested this would be in place by October 2017, but now the deadline is October 2018. |
| "Auto-enrolment was conceived against a backdrop of rising personal incomes and a growing economy," said Rudi Smith, of consultants Towers Watson. | "Auto-enrolment was conceived against a backdrop of rising personal incomes and a growing economy," said Rudi Smith, of consultants Towers Watson. |
| "It will obviously be tougher for employers and employees to absorb the costs of contributions in today's environment, but paying for retirement is not getting any cheaper. | "It will obviously be tougher for employers and employees to absorb the costs of contributions in today's environment, but paying for retirement is not getting any cheaper. |
| "The government is saying there will be no further delays regardless of what happens to the economy, and employers will have to plan on this basis." | "The government is saying there will be no further delays regardless of what happens to the economy, and employers will have to plan on this basis." |
| Michelle Mitchell, Age UK's charity director, said: "We were disappointed that the original timetable for the introduction of auto-enrolment was delayed but at least now there is a clear schedule to allow employers and employees to plan for the future and a firm commitment not to exempt small businesses. | Michelle Mitchell, Age UK's charity director, said: "We were disappointed that the original timetable for the introduction of auto-enrolment was delayed but at least now there is a clear schedule to allow employers and employees to plan for the future and a firm commitment not to exempt small businesses. |
| "The timetable must not be allowed to slip further and the government must now encourage employers to start putting arrangements in place." | "The timetable must not be allowed to slip further and the government must now encourage employers to start putting arrangements in place." |