Forcing workers out of pension schemes illegal - DWP

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Pensions Minister Mike O'Brien says encouraging workers not to save in a workplace pension scheme will become unlawful under proposed changes to the Pensions Bill.

The DWP says it will amend the current Pensions Bill during the Lords stages to prohibit employers from offering ‘inducements’, such as higher salaries or one-off bonuses, which encourage workers to opt out. O’Brien says the amendment, which will come into force alongside the introduction of automatic enrolment in 2012, will also cover circumstances where employers simply try to force their workers to opt out. It will leave individuals free to decide if they want to be a member of a workplace pension scheme, he says. Employers deemed guilty of flouting the new rules could be forced to...

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