Upping the earnings threshold for auto-enrolment into occupational pension schemes will hit women and part-time, agency and temporary staff, shadow pensions minister Rachel Reeves says.
The government yesterday said auto-enrolment and NEST would go ahead from 2012, with no exemption for any business but with a three month grace period before employers must enroll staff into a pension scheme. Pensions minister Steve Webb said auto-enrolment would only apply when a person earns more than £7,475 per year, considerably higher than the previously proposed level of £5,035. Reeves' questioning on Monday forced Webb to reveal up to 500,000 women and a similar number from black and minority ethnic communities will be excluded from auto-enrolment by the threshold hike. "Ove...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes