Pensions compulsion could be imminent, taskforce warns

The report of the Employer Task Force on Pensions warns employers that if private pension provision cannot be made to work, the government will introduce higher taxes and/or compulsion.

The report recommends that employers raise participation rates and contribution levels by offering greater flexibility on savings, and by introducing automatic enrolment, active decision-making and pre-agreed pension savings programmes.

In response to the recommendations of the taskforce, the government will provide a single web-based source of good practice information for employers. This will include case studies and guidance already published by the taskforce.

  • Act now or face compulsion, says pension taskforce   From IRS journal Occupational Pensions.

  • Employer Task Force on Pensions: report to the Secretary of State for Work and Pensions (PDF format)  Read the report in full, as published on the ETF website.

    Also

    Minister favours auto opt-in for company pension plans    Personnel Today reports on a speech given by Alan Johnson, secretary of state for work and pensions, at the CIPD's reward conference in London in early February 2005.

    TUC calls for compulsory pension contributions  and Mellon warns of dangers of pension compulsion  From personneltoday.com.

    Pensions Commission consults on pensions crisis and Pensions agenda 2005    XpertHR reports.