Industry calls for radical overhaul of AE contributions

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The pensions industry has rejected government proposals to tinker with auto-enrolment (AE) earning thresholds and called for a complete overhaul.

Respondents to a Department for Work and Pensions (DWP) consultation said the government's own suggestions were "insufficiently radical". The four options that DWP proposed were: freezing the trigger at its current level of £10,000; raising it in line with inflation; increasing it to £10,500 in line with the threshold for paying income tax; or using the Pension Commission benchmark replacement rate to determine the trigger. The Association of Consulting Actuaries (ACA) said that the calculation of AE contributions should remain simple and not discriminate against part-time female work...

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