Employers to pay 3% contributions from 2012

Actual contents of the DWP white paper are still being analysed, but John Hutton, secretary of state for work and pensions, has just revealed in the House of Commons employees will be automatically enrolled into their employer’s occupational pension scheme or an individual pension account – under the Npss once introduced – and have the option of opting out. However, mandatory employer contributions of 3% will be phased in over a three-year period from 2012, for all employees earning between £5,000 and £33,000 a year, at a rate of 1% a year so employers will be paying 3% by 2014. It is not...