ABI: Pensions Act 2008 a landmark in pension reform – now it’s the details that matter

Landmark legislation which could transform the UK pensions landscape has formally become law. The Pensions Act 2008 introduces automatic enrolment into workplace pension schemes, alongside a new system for pension saving for low and moderate earners from 2012. The ABI has worked closely with the Government on the Bill, and strongly supports its principles.

There is now much work to be done on getting the regulations right, so that the Act works properly. Of particular importance are measures to enable employers to self-certify their own existing good quality pension schemes – we will continue to argue for automatic enrolment into such schemes to be allowed as soon as possible. And the charging structure for the new system must be fair to all pension savers, and it must not benefit from any unfair state subsidy.

Maggie Craig, the ABI’s Director of Life and Savings, said:

“The ABI has supported the principles of the Pensions Act throughout its Parliamentary life, and we commend the Government on its reforms. Automatic enrolment has the potential to bring millions of current and future employees into pensions, helping them build up savings for a comfortable retirement.

“But why wait until 2012 to allow automatic enrolment into existing schemes? Pension providers are willing and able to begin automatic enrolment as soon as possible, if employers want to offer that benefit to their employees. We will continue to argue for Government action on this as we provide ongoing support during the detailed process of drafting regulations that will make the Pensions Act a practical reality.”

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