High on the priorities of Ros Altmann, the new minister for Pensions, should be an early review of Auto Enrolment.
It is reported that the new minister said that Auto Enrolment contributions would need to be revisited and recent research revealed that employers support such proposals.
In a recent survey, over 200 senior HR and finance professionals found that more than three-quarters (76%) of employers believed that an increase in pension contribution levels should be made and only 15% felt that no increase was necessary. The results of the survey also revealed that 85% of employers believe that an increase should be borne in part, or entirely by the employer, with only 14% saying the increase should come from the employee.
The head of benefits strategy for Jelf Employee Benefits, said: “Frankly, we were a little surprised at these results. Many employers are yet to reach their staging date, and a significant proportion of those who have already staged are not yet at the full contribution rate.” He continued: “That said, it’s very encouraging that employers continue to see the benefits of offering a quality pension scheme.”
The survey also revealed that four in ten employers would consider early action, increasing the contribution levels ahead of any legislated increase, thus smoothing the higher cost over a number of years.