Pension Personal Accounts – First DWP consultation document publishedMonday, March 30th, 2009
The first of three consultation documents on the rules and procedures that will apply to the provision by employers of Pension Personal Accounts from 2012 has been published by the Department for Work and Pensions (DWP).
From an expected commencement date of April 2012, employers will be required to enrol automatically eligible jobholders into qualifying workplace pension schemes, with minimum employer contributions. Individuals who prefer not to participate in workplace pension saving will have the right to opt-out.
This first consultation is aimed at employers, employee representatives, pension industry professionals (including occupational pension and workplace personal pension scheme administrators), payroll administrators, accountants, payroll bureaux, Independent Financial Advisors and employee benefit consultants. Comments from workers and the general public are also invited.
The issues addressed in this initial consultation are
- the practical arrangements involved in enrolling workers into workplace pension schemes and, where appropriate, the circumstances and arrangements for postponing automatic enrolment
- the information that employers will be required to provide to their workers and to pension schemes
- the arrangements whereby individuals will be able to opt out of pension saving following automatic enrolment
- the regulations that will enable the Pensions Regulator to delegate some compliance powers to external public and private bodies.
We have incorporated the proposals set out in the consultation document with the revised overview of Pension Personal Accounts that is included in this newsletter. It covers the statutory provisions that are already in place in the Pensions Act 2008 and in the various explanatory documents that have already been issued by DWP.
Two further regulation consultations are planned for Spring and Autumn 2009 respectively. These will include proposals for
- the personal accounts scheme order and rules followed by the remaining elements of the employer duty (including re-enrolment and opt ins, staging, phasing, qualifying schemes criteria and certification), and
- employment safeguards and elements of the compliance regime, including information to be passed to the Pensions Regulator, sanctions and penalties.
The closing date for responses to this consultation exercise is 3 June 2009.
Pensions – Consultation on Draft Regulations
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