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01/10/2012
Pensions Reform Comes Into Effect
The UK workplace pensions reform is well under way, with automatic enrolment into a workplace pension beginning today.
The goal of the new legislation us to ensure low and middle earners are provided with an addition to the state pension.
But the Institute for Fiscal Studies has warned that, under the new rules, some employees who might have saved more may stick to the minimum level.
The new regulations will see workers aged over 22 have a proportion of their salary automatically diverted to a pension pot, provided they are not already part of a workplace pension scheme.
For many employees, this will be the first time a boss has contributed to pension savings.
The initial proportion will only amount to a minimum of 0.8% of a worker’s pensionable earnings, with employers then required by law to add an additional 1%. Tax relief adds another 0.2%
This will later increase to 4% from the worker, 3% from the employer and 1% in tax relief.
Pensions Minister Steve Webb told the BBC: "The huge gap that we are trying to fill is [in] long-term pension saving."
"We have got half the workforce building up no pension beyond the state pension, and that is why this system is such a positive thing.
"You don't have all the hassle and complexity of choosing a pension. The firm chooses it for you, they put money in, you put money in, and then the only hassle is if you want to opt out", he said.
Only large employers, like supermarkets, will take part in the first phase of automatic enrolment. Others will then join as the system is rolled out.
The smallest firms will not sign up their staff until June 2015 at the earliest.
(IT)
The goal of the new legislation us to ensure low and middle earners are provided with an addition to the state pension.
But the Institute for Fiscal Studies has warned that, under the new rules, some employees who might have saved more may stick to the minimum level.
The new regulations will see workers aged over 22 have a proportion of their salary automatically diverted to a pension pot, provided they are not already part of a workplace pension scheme.
For many employees, this will be the first time a boss has contributed to pension savings.
The initial proportion will only amount to a minimum of 0.8% of a worker’s pensionable earnings, with employers then required by law to add an additional 1%. Tax relief adds another 0.2%
This will later increase to 4% from the worker, 3% from the employer and 1% in tax relief.
Pensions Minister Steve Webb told the BBC: "The huge gap that we are trying to fill is [in] long-term pension saving."
"We have got half the workforce building up no pension beyond the state pension, and that is why this system is such a positive thing.
"You don't have all the hassle and complexity of choosing a pension. The firm chooses it for you, they put money in, you put money in, and then the only hassle is if you want to opt out", he said.
Only large employers, like supermarkets, will take part in the first phase of automatic enrolment. Others will then join as the system is rolled out.
The smallest firms will not sign up their staff until June 2015 at the earliest.
(IT)
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Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
25 July 2005
Pension Age 'should rise to 67'
The pension age in the UK should be raised to 67, a report by the Institute for Public Policy Research (IPPR) has suggested.
Pension Age 'should rise to 67'
The pension age in the UK should be raised to 67, a report by the Institute for Public Policy Research (IPPR) has suggested.
29 July 2003
Majority of people have scant knowledge of pensions
Research published today by the Department for Work and Pensions suggests that around half the population has little or no knowledge of pension provision. The research looked at private pension provision among people of working age in Britain and collected information on people's attitudes towards pensions and saving for retirement.
Majority of people have scant knowledge of pensions
Research published today by the Department for Work and Pensions suggests that around half the population has little or no knowledge of pension provision. The research looked at private pension provision among people of working age in Britain and collected information on people's attitudes towards pensions and saving for retirement.
24 November 2005
TUC raps bosses 'luxury' pensions
The TUC has rapped the top rate pensions paid to company directors, while workers are asked to work longer for smaller pensions. A TUC report claimed that 8 out of 10 of the UK's top companies provide directors with pensions that can pay out in full at 60 and are worth, on average, 26 times those of most employees.
TUC raps bosses 'luxury' pensions
The TUC has rapped the top rate pensions paid to company directors, while workers are asked to work longer for smaller pensions. A TUC report claimed that 8 out of 10 of the UK's top companies provide directors with pensions that can pay out in full at 60 and are worth, on average, 26 times those of most employees.
12 February 2004
Greater protection promised for employees through Pensions Bill
A new fund to make sure workers get the pension they were promised has been unveiled in the Pensions Bill published today. Among the package of measures, the Pension Protection Fund will, it is hoped, make pensions more secure and simpler to understand.
Greater protection promised for employees through Pensions Bill
A new fund to make sure workers get the pension they were promised has been unveiled in the Pensions Bill published today. Among the package of measures, the Pension Protection Fund will, it is hoped, make pensions more secure and simpler to understand.
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
