Pensions reform white paper at a glance

The key findings of the DWP white paper on pensions reform are: Employees will contribute 4% “of a band of earnings” of between £5,000 and £33,000 a year Employers will pay matching contributions of 3% to the same band of earnings – phased in over three years A further 1% will be paid the form of “normal tax relief” – ie “1% represents basic rate tax relief on individuals’ contributions Employer contributions to be introduce from 2012 at a rate of 1% a year to a limit of 3% by 2014 Small businesses to be consulted on the need for transitional support and the possibility of a longe...