The auto-enrolment review has proposed radically simplifying the certification process for existing workplace schemes.
The Making Automatic Enrolment Review - published this morning - said employers who run good schemes wanted certainty over whether contributions based on these definitions are enough to meet the legislated amounts.
It said if they had to change their scheme rules to achieve this, there was a real risk the revised rules may be somewhat less generous overall.
Today's Review provided further clarity for employers. It said schemes meeting one of the following criteria could be certified as meeting the requirements:
- a minimum 9% contribution of pensionable pay (including a 4% employer contribution)
- a minimum 8% contribution of pensionable pay (with a 3% employer contribution) provided pensionable pay constitutes at least 85% of the total pay bill
- a minimum 7% contribution of pensionable pay (3% employer contribution), provided that the total pay bill is pensionable
The review also proposed the initial tranches of employers staged into automatic enrolment in October and November 2012 should be allowed to act as early as July 2012 if they want.
Employers should also be allowed three months' flexibility around their scheduled re-enrolment date.
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