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The Actuary The magazine of the Institute & Faculty of Actuaries

Pensions auto-enrolment for all

The coalition government has decided that there should be no small business exemption from the new rules coming into force by 2016 which will require all employees to be enrolled into a pension scheme, including the option of the National Employment Savings Trust (NEST).

Following a review, a number of small changes to the original Labour proposals are now proposed, including allowing 9% of basic pay to be an acceptable form of pension saving, rather then having to make adjustments for bonuses or overtime using a total pay contribution level of 8%. There is the prospect that the ceiling on contribution levels might be removed in 2017, allowing an unlimited level of saving into NEST for those with higher earnings.