Pension auto-enrolment timetable released

Following recent alterations to controversial pension auto-enrolment in the UK, the government has issued a full timetable against which employers must enrol their staff in workplace pension schemes.

The amendments have been made in order to allow smaller businesses more time to prepare for auto-enrolment, according to the government, as firms struggle to thrive in "exceptionally tough economic times".

Announcing the changes, minister for pensions Steve Webb said: "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."

Firms employing between 50 to 249 staff must implement the scheme between 1 April 2014 and 1 April 2015; those with 30 to 49 staff between 1 August 2015 and 1 October 2015; while those with fewer than 30 qualifying workers must implement the scheme between 1 January 2016 and 1 April 2017. However, larger employers (those with 250 employees or more) will not be subject to any change in their deadlines for auto-enrolment.

But while the vast majority have welcomed the changes, professional services company Towers Watson accused the government of "just one more delay", as the postponement will be detrimental to employees hoping to join such pension schemes and employers looking to make provisions for the change in policy.

"It isn't only small employers affected by these delays: some large employers will be able to keep contributions lower for longer where they do not think all employees attach sufficient value to their main pension offering,” said Rudi Smith, Senior Consultant at Towers Watson.

"As employers get their teeth into these rules, they are finding that many things do not work quite as they thought. They are also waiting for the government to finalise standards that existing pension schemes will have to comply with. Large employers won't have much time to firm up their plans after these are published."

For the full timetable, visit http://www.dwp.gov.uk/consultations/2011/workplace-pension-reform-2011.shtml.