Latest news
Abolition of contracting out
12 March 2010
The Government has confirmed today that the option to contract out of the additional State Pension into a Defined Contribution pension scheme will be abolished from 6 April 2012. Individuals who are contracted-out into a Defined Contribution pension scheme will be automatically brought back into the additional State Pension from this date. We legislated for this in the Pensions Act 2007 and 2008.
NEST contract awarded
2 March 2010
Today DWP announced that the Personal Accounts Delivery Authority (PADA) intends to award the NEST (National Employment Savings Trust) Scheme Administration Services contract to Tata Consultancy Services Limited (TCS).
Read more on the Personal Accounts Delivery Authority website
A milestone for Workplace Pension Reform
12 January 2010
The final batch of regulations to deliver the ground breaking workplace pension reforms were unveiled today, reflecting the fact that the Government has worked closely with stakeholders and employers to maintain the consensus and ensure the regulations are responsive to their needs and concerns.
Today is a very important milestone for workplace pension reform, we are:
- laying regulations on the workplace pension reforms;
- publishing the Government response to the Workplace Pension Reform – Completing the picture consultation;
- publishing the regulations that will establish National Employment Savings Trust (NEST) and the corporation that will run the scheme, as well as winding up Personal Accounts Delivery Authority (PADA) from July this year; and
- publishing the associated impact assessment
- National Employment Savings Trust (NEST) (Personal Accounts Delivery Authority website)
Auto-enrolment will begin as planned in October 2012 and will be fully phased in by October 2017.
The following regulations are published today and are available on the Office of Publication Information website.
- The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010: These set out the practical arrangements employers must make to automatically enrol eligible jobholders into a pension scheme, including the arrangements an individual must make if they wish to opt out of pension saving and the minimum quality standards certain schemes must reach in order to be used by employers to automatically enrol jobholders.
- The Employers’ Duties (Implementation) Regulations 2010: These set out the arrangements for implementing the new employer duties by applying the duties to employers over a period of time according to the employers’ description.
- The Employers’ Duties (Registration and Compliance) Regulations 2010: These enable the Pensions Regulator to monitor and enforce compliance with the employer duties and safeguards.
- The Public Interest Disclosure (Prescribed Persons) Order 2010: This amends an existing order to ensure that any detriment or dismissal a worker suffers as a result of making a complaint to the Pensions Regulator is unlawful.
- The Pensions Act 2008 (Commencement No. 5) Order 2010: Establishes the NEST Corporation from 5 July 2010.
- The NEST Corporation Naming and Financial Year Order 2010: Sets out the name of the trustee corporation which will run NESTand sets the financial year of the corporation in line with Government’s financial year - 1 April to 31 March.
- The NEST Order 2010: Sets up the framework for NEST, a simple, low cost scheme which employers can use to discharge their new duty.
- The NEST (Consequential Provisions) Order 2010, and The Application of Pension Legislation to the NEST Corporation Regulations 2010: Make some minor modifications to existing pension legislation in relation to the scheme through The NEST Consequential Provisions Order and The Application of Pension Legislation to the NEST Corporation Regulations, for instance, that the scheme will not have member-nominated trustees, as the members’ panel will represent the views of scheme members.
- http://www.opsi.gov.uk/si/si2010/uksi_20100009_en_1
- http://www.opsi.gov.uk/si/si2010/uksi_20100008_en_1
- The Transfer Values (Disapplication) Regulations 2010: Bans transfers of cash equivalent sums built up under other pension arrangements into and out of NEST, to ensure the scheme complements those schemes already in the existing pensions market.
- The Personal Accounts Delivery Authority Winding Up Order 2010: Winds up the Personal Accounts Delivery Authority from 5 July 2010. Transfers PADA’s property, rights and liabilities in the main to the NEST Corporation.
- Workplace pension reform – completing the picture. Government Response to the Consultation: This covers:
- arrangements for implementing the reforms;
- elements of the employer duty requirements not covered in the consultation of March 2009;
- the quality requirements for defined benefit (DB) and hybrid schemes, and transitional arrangements during implementation
- powers to enforce compliance with the requirements on employers.
- The Hybrid Schemes Quality Requirements Rules 2010 are being published in draft to help with completing the picture. Work will continue with stakeholders in developing the rules and guidance for publication later on.
- Workplace pension reform regulations – impact assessment: The impact assessment builds on the analysis presented in the Regulatory Impact Assessments that accompanied the Pensions Bill 2007 and draft regulations consultation in 2009. It presents the overall impact of the reform on employers, individuals, the pensions industry and the Government.
- Workplace Pension Reforms Regulations – Impact Assessment (808KB)
- Summary of emerging findings - Employers attitudes to WPR survey 2009 (63KB)
Changes to DWP’s plans for workplace pension reforms
9 December 2009
Today, the Chancellor has announced changes to our plans for workplace pension reforms in the Pre Budget Report.
Automatic enrolment will start as planned in October 2012. DWP has reviewed the detail of its implementation plan in the context of the current economic circumstances. Based on this:
- An adjustment will be introduced to our implementation plan to allow new companies setting-up during the implementation period more breathing space to establish themselves before they are required to auto-enrol their workers; and
- Look to extend this extra support to small and micro businesses, without unduly compromising the overall delivery of the reform package; and
- Support will be provided to ensure that all workers have time to get used to saving for a pension at the lowest phase level of contributions
Businesses will be given setting-up during the implementation period more breathing space to establish themselves by allowing an extra time before they are required to auto-enrol their employees into a pension scheme, bringing them into the reforms after the main staging for existing employers.
This extra support for business means, in turn, that an employee could be auto-enrolled into a workplace pension slightly later in 2016. Many of these individuals will be low-paid and saving in a pension for the first time. It is critical that the reforms maximises the change in savings’ culture amongst this key target group. All employees will be able to take part in pension savings for a reasonable period with a minimum contribution of 1% of earnings.
In January, as part of the response to the latest workplace pension reform consultation, DWP will announce the detail of the implementation plan.
The Pension (Automatic Enrolment) Regulations 2009: Government response to the consultation
24 September 2009
We are today publishing the Government response to the consultation: the Pensions (Automatic Enrolment) Regulation 2009, which we consulted on earlier this year (March-June 2009).
Consultation paper on Workplace Pension Reform: Completing the Picture
24 September 2009
The Government has today issued a consultation document in respect of regulations made using powers contained in the Pensions Act 2008. These regulations cover:
- how the duties will be introduced to support smooth delivery and help employers adjust to the reforms;
- elements of the employer duty requirements not covered in the consultation of March 2009, including pay reference periods, voluntary joining for individuals not eligible for automatic enrolment, re-enrolment of eligible individuals, and requirements on employers to maintain membership of a qualifying pension scheme;
- the quality requirements for pension schemes; and
- the compliance regulations.
This consultation will last until 5 November.
An impact assessment is published alongside this consultation document.
- Workplace Pension Reforms – Completing the Picture (1.09MB)
- Executive Summary of the Completing the Picture consultation (300KB)
- Impact Assessment of the Workplace Pension Reforms – Completing the Picture, Regulations 2010 (486KB)
Consultation paper on the use of Default Options in Workplace Personal Pensions and the use of Group Self Invested Personal Pensions for Automatic Enrolment
24 September 2009
We are consulting on draft guidance which relates to reforms introduced in the Pensions Act 2008:
- the use of default funds in Workplace Personal Pensions (WPPs) used for automatic enrolment; and
- the use of Group Self-Invested Personal Pensions (Group SIPPs) for automatic enrolment.
This consultation will last until 17 December.
State Pension Reforms – briefing pack for advisers
30 April 2009
This pack aims to support any adviser whose customers wish to understand how they may be affected by changes to State Pensions coming into effect from 6 April 2010. These changes will make State Pensions simpler, fairer and more widely available and will have wide-ranging effects.
Pensions consultation on draft scheme order and rules
28 April 2009
The Government issued a consultation paper today which sets out the proposals on the legal framework for the personal accounts scheme - the scheme order and rules.The personal accounts scheme is an integral part of the Government’s pension reform programme and will help millions of people save for retirement for the first time – many of whom will be on low to moderate incomes.This is a joint publication with the Personal Accounts Delivery Authority.
Consultation paper on Automatic Enrolment and to enable the Pensions Regulator to delegate certain compliance powers
12 March 2009
The Government issued a consultation paper today on the draft Pensions (Automatic Enrolment) Regulations 2009 made under Chapter 1 Part of the Pensions Act 2008 and the draft Pensions Regulator (Delegation of Powers) Regulations 2009 made under Part 5 of the Act. An impact assessment of Pensions (Automatic Enrolment) Regulations 2009 is published alongside this consultation document.
- Consultation on Draft Regulations - The Pensions (Automatic Enrolment) Regulations 2009 and The Pensions Regulator (Delegation of Powers) Regulations 2009 (349KB)
- Impact Assessment of Pensions (Automatic Enrolment) Regulations 2009 (107KB)
The Pension Act 2008
26 November 2008
The Pensions Act 2008 puts into law reforms to the private pension system aimed at encouraging people to build up a private pension income to supplement their basic State Pension in retirement. Most of the measures in the Act come into effect from 2012.
- Read the factsheet setting out the changes made in the Act (19KB)
- Read more about the changes in the Act
Consultation paper on risk sharing
5 June 2008
The Government is interested in seeking views on risk sharing within occupational pension schemes and issued a consultation paper (2MB) today. An impact assessment (76KB) was published alongside the consultation document.
The consultation period ends on 28 August 2008.
Consultation - The powers of the Pensions Regulator
25 April 2008
- Consultation - The powers of the Pensions Regulator - Amendments to the anti-avoidance measures in the Pensions Act 2004 (345KB)
- Ministerial statement on the proposed changes (28KB)
Consultation on enhancing the Pensions Regulators powers
14 April 2008
The Government has proposed changes to the Pensions Regulator's powers relating to occupational pension schemes, in order to increase protection for pension scheme members. A consultation document will be published shortly and any subsequent legislation will be introduced at the earliest opportunity.
Thoresen Review published
3 March 2008
Otto Thoresen has published the final report of his Review of Generic Financial Advice which explores a blueprint for a national money guidance service, so people can make better decisions about money issues, including pensions.
- Read the Thoresen Review (this link will take you to the HM Treasury website)
