Employers unsure on pension changes

04/06/2008

UK employers are unsure of the government's plans to change pensions, a report has found.

Research by the British Chambers of Commerce revealed more than half (56 per cent) said they were either quite or completely unaware of the details.

"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," said David Frost, director general.

From 2012, employers will be required to automatically enroll their employees into a pension scheme, which will add to their payroll costs.

Mr Frost said more action is needed to tell employers about the changes as only ten per cent were aware how much it was going to cost them.

"Not enforcing the changes until 2012 is a smart move as it allows employers some time to phase in the reforms," he added.

The National Association of Pensions Funds has welcomed a recent European Union decision supporting auto enrolment.

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