TPR and PLSA reveal AE contribution hike's minimal impact on opt-outs

In April, minimum auto-enrolment (AE) contribution rates increased from a total of 2%, with a 1% minimum employer contribution, to a total of 5%, with a 2% minimum employer contribution. The survey results outlined in the watchdog's Auto-enrolment ongoing duties report published on 11 October found that when the rate went up, the cessation rate - the mean proportion of members asking to leave the scheme across all employers implementing increased contributions - was just 1.8% for micro, 1.7% for small, and 0.9% for medium employers. The regulator identifies firms with 50 to 249 staff ...