The pensions minister, Guy Opperman MP, has emphasised the Department for Work and Pensions’ commitment to the 2017 automatic enrolment review proposals that are due to be implemented by the mid-2020s.
The DWP had outlined proposals to implement policy on extending automatic enrolment to employees by lowering the qualifying age from 22 to18, as well as removing the lower earnings threshold which would allow contributions from the first pound of earnings.
Minister for pensions and financial inclusion Guy Opperman says: “The 2017 Review report was clear that implementation will be subject to learning from previous workplace pension contribution increases, discussions with employers and others on the right approach, and finding ways to make these changes affordable. We will do this in light of the impact of the pandemic and our overall support for economic recovery, while continuing to support long-term saving, balancing the needs of savers, employers and tax-payers.”
Aegon head of pensions Kate Smith says: “We’re delighted that the Pensions Minister has recommitted to implementing the proposals recommended in the 2017 Review of Auto-enrolment. Auto-enrolment has become the norm for many employees, but some groups, such as the under 22s, have been excluded and are missing out on a valuable employer contribution. Widening the scope of auto-enrolment by bringing down the age trigger from 22 to 18 will bring many more thousands of young employees into workplace pensions, provided they earn £10,000 a year.
“The mid-2020s are fast approaching and realistically there is still a lot of work to be done before these can be implemented including building consensus, especially against a backdrop of increasing national insurance contributions from April 2022 for both employers and employees. If the changes are to be effective from the mid-2020 the work needs to start now to build a consensus, agree a timeline and draft the legislation to make this happen.”
The post Pensions minister recommits to 2017 automatic enrolment review proposals appeared first on Corporate Adviser.
