The Pensions Bill has received Royal Assent.
Starting from October 2012, employers will begin to automatically enrol eligible employees into a qualifying pension scheme and contribute to that pension.
Measures in the Pensions Bill include:
- Organisations will be allowed to defer auto-enrolment for up to three months.
- The scheme certification process will be simplified.
- There will be greater flexibility in choosing the automatic re-enrolment date.
- Introduction of a new higher earnings threshold for automatic-enrolment set initially at £7,475, to be reviewed every year.
Steve Webb, pensions minister, said: “We have addressed the concerns of business, with measure in law to slash bureaucracy and cut costs, saving them around £176 million each year. And we are bringing the reforms in gradually to give firms time to adjust.
“Automatic enrolment will get millions saving, giving many low and middle-income workers access to a pension, with a contribution from their employer, for the first time in their lives.
“We cannot stand by as life expectancy continues to rise dramatically while those saving 2012 a pension fall into a rapid decline.
“Automatic enrolment is necessary. It is good for the country and good for long-term growth.”
Read our report on the pension reforms
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