Our new policy paper - ‘Automatic enrolment and the law – how far do employers’ duties extend’ – summarises current minimum duties on employers to enrol ‘eligible jobholders’ into a pension of a minimum standard, to make the necessary contributions, to notify workers of their rights to opt out and so forth.
But the paper warns that there are three reasons why employers in general, and larger employers in particular, may wish to do more than the legal minimum:
The paper highlights several areas where employers should not regard automatic enrolment as a ‘once and done’ activity. These include:
Commenting, Steve Webb, Director of Policy at Royal London said:
It is very tempting for employers thinking that once they have chosen a pension scheme and enrolled the right workers they can largely forget about automatic enrolment. This paper is a wake-up call, especially for larger employers, which suggests that this might be a high-risk strategy. Many larger employers do already take pensions seriously and go well beyond their statutory minimum duties. But all employers should be reviewing their automatic enrolment arrangements on a regular basis to ensure that it remains fit for purpose.
You can read the full policy paper here.