Proposals to improve the automatic enrolment process have been published by the Department for Work and Pensions.
Feedback received from employers, payroll service providers and the pensions sector since the roll-out of automatic enrolment into workplace schemes began last October has helped to shape a consultation launched by the department on 25 March. Key proposals in the consultation include:
- streamlining the process for assessing who is eligible for automatic enrolment, with a new regulation designed to allow employers to assess eligibility using information already collected by payroll systems
- lifting the requirement for people to be automatically enrolled if they have recently been placed into their company pension scheme and then left it
- exploring whether the process can be made easier for some employers, whose approach already meets the aims of automatic enrolment or who offer a defined benefit scheme.
Minister for Pensions Steve Webb said: “We promised we’d listen to those employers who were first to automatically enrol their staff into a workplace pension.
“These proposals are to make sure that parts of the legislation work better and are more user-friendly. We are also asking for suggestions on how we could recognise the best employers.
“Employers and our partners in the pensions and payroll industry have made a major contribution in delivering these landmark reforms. We want to build on this as medium-sized employers prepare to automatically enrol their staff into a workplace pension.”
The DWP will be seeking detailed feedback on its proposals and the consultation will run until 7 May 2013.