Businesses 'must be ready for auto-enrolment'

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Businesses 'must be ready for auto-enrolment'

Fri 6th Jan 2012

Firms across the UK have been urged to be as prepared as possible for the implementation of the government's new pensions auto-enrolment scheme, which is set to come into force later this year.

Robin Ellison, head of strategic development for pensions at Pinsent Masons, said many businesses are at present not adequately prepared for the switch, but while all firms will have to comply, there remain a number of question marks over the effectiveness of this move.

He commented: "Contributions are too low, the rules are too complicated and nobody is quite sure if the systems work."

As a result, Mr Ellison claimed the new system may not provide the level of pensions required to help those who are the least well off at present.

The new auto-enrolment scheme is to be implemented in October this year and means firms will have to sign any eligible employees up for company pension schemes automatically, whereas under the current system staff must join by request.

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