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The Actuary The magazine of the Institute & Faculty of Actuaries

Miles more red tape

The government has released consultation documents on the introduction of the new employer obligations on pension schemes from 2012. It has held to its 2012 date (October in fact, which hardly fits in with normal business timetables) but put back full completion of the introduction until 2015. In the first year, available contributions must total at least 2% of pay (1% being from the employer), with the 8% goal only to be achieved by October 2015. According to Paul Macro of Watson Wyatt: “The Turner report envisaged that auto-enrolment would begin in 2010. Now, it will be October 2015 before the new rules apply across the board.”

For any idle HR or finance departments planning what this means for them, there are 200 pages of consultation to chew over in only six weeks. By the time this magazine is printed, the deadline of 5 November will be upon us. It is astonishing how much material a simple defined contribution requirement generates. Maybe a look over our shoulders at the size of today’s Finance Acts will make us realise that pensions is merely in the same boat now as tax. But it is still another pile of administration that businesses hardly welcome.