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DWP reiterates workplace pension plans
26/03/2007
UK firms with more than five employees must offer their staff access to stakeholder pensions, according to the Department of Work and Pensions (DWP).
Changes to the pensions system will be implemented in the next five years, the department adds.
The DWP's comments follow research earlier this month by Barclays Financial Planning which showed that eight per cent of firms with turnovers between £1 million and £15 million do not provide any pension plans for employees.
"We have proposed that from 2012 all employees are automatically enrolled into a system of personal accounts or a qualifying workplace pension," said a DWP spokesperson.
"Employees would need to pay in a contribution of four per cent and there would be a minimum employer contribution of three per cent, plus one per cent tax relief from the government."
The DWP also stated last week that its policy will encourage the employment of older people.
Changes to the pensions system will be implemented in the next five years, the department adds.
The DWP's comments follow research earlier this month by Barclays Financial Planning which showed that eight per cent of firms with turnovers between £1 million and £15 million do not provide any pension plans for employees.
"We have proposed that from 2012 all employees are automatically enrolled into a system of personal accounts or a qualifying workplace pension," said a DWP spokesperson.
"Employees would need to pay in a contribution of four per cent and there would be a minimum employer contribution of three per cent, plus one per cent tax relief from the government."
The DWP also stated last week that its policy will encourage the employment of older people.