Our Research | Other

18 June 2009

We see little reason for forcing new recruits into active membership of a scheme, even if it is the Personal Accounts Scheme, only for them to opt out a few days later.  It will place an unnecessary burden on employers to require them to go through the hoop of automatic enrolment (and possibly deducting contributions only for them to be refunded a few weeks down the line) before the recruit has had the chance to opt out.

The regulations contain prescriptive time limits.  Whilst these may be achievable for larger employers with an adequately resourced and experienced payroll department, they would be unrealistic for small employers who may rely on a single employee to attend to payroll matters on a part-time basis or outsource payroll to a third party.  We suggest such employers should be afforded greater flexibility.  This could be achieved by requiring actions to be completed within a reasonable period, supported by guidance from The Pensions Regulator which could take account of employers’ resources.

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