Mind the gap over pensions auto-enrolment, NEST warns
30 January 2014
A report by national not-for-profit pension scheme provider NEST highlighted three “fundamental gaps” employers have to deal with in implementing automatic enrolment of their employees, and in the case of recruitment agencies their temporary agency workers.
Thu, 30 Jan 2014A report by national not-for-profit pension scheme provider NEST highlighted three “fundamental gaps” employers have to deal with in implementing automatic enrolment of their employees, and in the case of recruitment agencies their temporary agency workers.
Since October 2012, firms have started being obliged to automatically enrol all workers aged between 22 and state pension age earning over a certain amounts into a pension scheme – click for more on pensions auto-enrolment and recruitment.
The report, ‘NEST Insight’, identifies lack of experience in offering pensions, a lack of understanding of pensions, and a failure to grasp how much time and effort is involved in implementing auto-enrolment as key challenges for employers.
These ‘gaps’ lead NEST to warn that, compared with their predecessors, second year employers may not be engaging enough with the detail of the reforms to successfully manage their duties.
NEST chief executive officer Tim Jones says: “The success of automatic enrolment so far, with low opt-out rates and over 2.5m workers automatically enrolled in a workplace pension, is due in large part to the efforts of first year employers. 2014 sees a new set of employers meeting their duties and they may find it more difficult than their predecessors. Our research suggests that nine out of 10 employers will expect help to fill any gaps in experience, expectations and knowledge.
“Our research also suggests that intermediaries are gearing up to help, but it’s vital that providers, intermediaries and employers work together to ensure the next wave of employers can meet their duties successfully.”
• Want to comment on this story? The Comment box is at the bottom of the page. Sorry for the glitch but just scroll right down and share your opinions!
Since October 2012, firms have started being obliged to automatically enrol all workers aged between 22 and state pension age earning over a certain amounts into a pension scheme – click for more on pensions auto-enrolment and recruitment.
The report, ‘NEST Insight’, identifies lack of experience in offering pensions, a lack of understanding of pensions, and a failure to grasp how much time and effort is involved in implementing auto-enrolment as key challenges for employers.
These ‘gaps’ lead NEST to warn that, compared with their predecessors, second year employers may not be engaging enough with the detail of the reforms to successfully manage their duties.
NEST chief executive officer Tim Jones says: “The success of automatic enrolment so far, with low opt-out rates and over 2.5m workers automatically enrolled in a workplace pension, is due in large part to the efforts of first year employers. 2014 sees a new set of employers meeting their duties and they may find it more difficult than their predecessors. Our research suggests that nine out of 10 employers will expect help to fill any gaps in experience, expectations and knowledge.
“Our research also suggests that intermediaries are gearing up to help, but it’s vital that providers, intermediaries and employers work together to ensure the next wave of employers can meet their duties successfully.”
- For more on auto-enrolment and the challenges facing recruitment agencies, click here.
• Want to comment on this story? The Comment box is at the bottom of the page. Sorry for the glitch but just scroll right down and share your opinions!
