37% of employers have not started to consider the impact of auto enrolment on their future pension strategy
28 October 2010
A Deloitte survey1 of major private sector employers, carried out prior to the publication yesterday of the Department of Work and Pensions’ independent review of automatic enrollment of employees into workplace pension saving from October 2012, indicates that:
Tony Clare, head of Deloitte’s pensions advisory services practice, said: “DWP’s review brings greater clarity for employers, particularly on who must be auto-enrolled and the expected costs. For larger employers which will have to commence auto-enrolment in less than two years, it is important that these employers take action now to identify how they will be affected and to understand how their current HR processes and benefit arrangements will be impacted.
“Deloitte welcomes the optional three month waiting period, and the proposed simplification of the certification process for employers who currently operate their own pension arrangements. We look forward to seeing how these recommendations will be set out in legislation.”
Auto-enrolment review - another key step in reforming pension provision
Commenting on auto-enrolment and its impact on wider pensions reform, Tony Clare said: “Auto-enrolment into workplace pension saving is a bold step as it grapples with the challenges presented by a rapidly ageing population and seeks to ensure that future generations are provided for in a manageable and cost effective way. The findings of the DWP review balances the need for employers to have flexibility with the need to encourage more people to save towards their retirement.
“We believe that the review findings, together with the recent proposals for a non means tested minimum pension income, should help address many of the previously expressed concerns over whether or not it will ‘pay to save’ for retirement. Successfully bringing these elements together should create a more robust and affordable partnership between government, employers, and employees, and make retirement saving choices clearer for individuals.”
Notes to editors
1. Deloitte surveyed 43 major employers with a combined headcount of more than 300,000 employees between 29 September and 22 October 2010.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.
Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.