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Firms 'to feel cost of NPSS'
23/02/2007
The introduction of the National Pension Saving Scheme (NPSS) will bring extra costs to small firms, one expert has claimed.
Automatically enrolling employees on to company pensions will "dramatically" increase the financial outlay of UK businesses, Des Hamilton, technical director at the Pensions Advisory Service, has claimed.
Mr Hamilton has suggested that government proposals to introduce an obligatory pension scheme will mean added pressure for firms which have previously not adopted an employee savings programme.
"If they [the government] start automatically enrolling these people then their costs could escalate quite dramatically and that is where you might [experience] a bit of levelling down," he commented.
Mr Hamilton added that the government "will be looking to those who have chosen in the past not to join the pension scheme and maybe not be prepared to offer that pension scheme".
Meanwhile, recent research from Scottish Widows has revealed that a growing number of self-employed people do not contribute to a pensions scheme.
Automatically enrolling employees on to company pensions will "dramatically" increase the financial outlay of UK businesses, Des Hamilton, technical director at the Pensions Advisory Service, has claimed.
Mr Hamilton has suggested that government proposals to introduce an obligatory pension scheme will mean added pressure for firms which have previously not adopted an employee savings programme.
"If they [the government] start automatically enrolling these people then their costs could escalate quite dramatically and that is where you might [experience] a bit of levelling down," he commented.
Mr Hamilton added that the government "will be looking to those who have chosen in the past not to join the pension scheme and maybe not be prepared to offer that pension scheme".
Meanwhile, recent research from Scottish Widows has revealed that a growing number of self-employed people do not contribute to a pensions scheme.