TPR to monitor 'suspicious' auto-enrolment opt outs

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The Pensions Regulator (TPR) said it will monitor "suspiciously high" opt-out rates under auto-enrolment after MPs suggested some employers may force workers to leave the scheme.

Malcolm Wicks, Labour MP for Croydon, said TPR will have no way of knowing if employees are forced to opt out or encouraged to become self-employed. By 2017, employers must automatically enroll their employees into a pension scheme. Employees will contribute 4%, employers 3% and there be 1% tax relief. In a committee debate on the Pensions Bill, MPs questioned how TPR will ensure employers do not coerce staff into opting out of pensions. Pensions minister Steve Webb (pictured) said TPR "will focus its resources on cases where opt-out rates look suspiciously high." Webb said TPR ...

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