The Department for Work and Pensions (DWP) has announced a consultation on the auto-enrolment earnings thresholds for 2012/2013.
The consultation, open until 26 January 2012, seeks views from employers and the employee benefits industry to inform the DWP how to take the review of the figures forward for the first year of auto-enrolment.
The Pensions Act 2011 requires the government to review the auto-enrolment earnings trigger, and the lower and upper limits of the qualifying earnings band each tax year.
This allows the DWP to ensure that auto-enrolment continues to target the right group of individuals, while carefully weighing the cost to business and the impact on the pension industry.
The consultation sets out the DWP’s approach and proposals for the first annual review of the figures.
It presents an assessment of relevant factors for each of the thresholds, sets out the DWP’s thinking behind those assessments, including the calculation methods it has considered using and the evidence on which its proposals are based.
Read more articles on the 2012 pension reforms and auto-enrolment