Pensions Bill: government to stop employers offering inducements to opt out of personal accounts

Resource type: Legal update: archive

Status: Published on 25-Jun-2008

Jurisdictions: England, Scotland, Wales

The government has announced plans to amend the Pensions Bill, currently going through the committee stage in the Lords, to prevent employers offering financial inducements to their employees to opt out of membership of workplace pension schemes after the automatic enrolment requirements come into force in 2012.

Amendment 106A introduces a new clause in the Bill, which provides that an employer will face a compliance notice from the Pensions Regulator if it takes action for the "sole or main purpose" of inducing an employee or worker to opt out of a personal accounts scheme or the employer's own qualifying scheme. The DWP says that inducements caught by the provision would include higher salaries or one-off bonuses.

These amendments follow previous amendments, now inserted as clauses 49 to 52 in the Bill, which are designed to stop employers favouring interview candidates who will opt out of the employer's scheme (see Legal update, Government plans amendment to the Pensions Bill to prevent pensions discrimination at job interviews).

See Pensions Bill: Second marshalled list of amendments to be moved in committee and Press release: Ban on encouraging or forcing workers to opt out of pension saving, DWP, 24 June 2008.
PLC Pensions

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  • Resource ID: 6-382-4039
  • Published: 25-Jun-2008
  • Products:  PLC Law Department Email, PLC UK Employment, PLC UK Pensions, PLC UK Public Sector
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