What is pensions reform?
Pensions reform is a package of both state and private pension changes, expected to be introduced in 2012, which will completely change the face of the pension industry in the UK. Employers will have new responsibilities to contribute to their workforce’s pension plans, and this will have a big impact on their business. The overall aim of the government’s pension reform strategy is to get more people saving for retirement. The Pensions Act 2008 is the second phase of these reforms and sets out new duties for employers. It allows for the establishment of the National Employment Savings Trust (NEST), aimed at low-to-medium earners. All employers in the UK, small and large, will need to take action to comply with their new responsibilities under the Pensions Act 2008. • When will it start? The new employer responsibilities start from October 2012 and will be staged in over four years. Employer size Staging date 10,000 or more Between 1 October 2012 and 1 March 2013 (determined by number o
