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News - 5 June 2008

Employers not up on new pension reforms

More than half of businesses are in the dark about major changes that are being planned for workplace pensions, a new survey has revealed.

Under the terms of the new Pensions Bill, as from 2012 employees will have to be automatically enrolled into a qualifying pension scheme if they have no pension provision.

However, the survey, commissioned by the British Chambers of Commerce (BCC), found that 56% of the firms that responded were either quite or completely unaware of the pension reforms.

Just 16% said that they were aware of the date when the changes are set to come into force, while a mere 6% reported that they had received any information about the government’s pension proposals.

Commenting on the results of the survey, David Frost, the director general of the BCC, said, “Given the radical changes proposed in the Bill, and an estimated £1.6 billion cost to small and medium sized enterprises, our survey results demonstrate just how important it is to ensure that all employers are made fully aware of their new obligations.

“Not enforcing the changes until 2012 is a smart move as it allows employers some time to phase in the reforms. But as our survey clearly shows, more action is needed to improve employer awareness so that businesses are not caught out and left unable to safely plan for their financial future.”

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