Automatic enrolment is showing early signs of being a real policy success. 7 million new savers have been drawn into pension saving and the majority of these new savers are saving into master trusts within PLSA’s membership. Within a few short years we have turned around the decline in workplace pension membership and are on the way to rebuilding and enhancing the UK’s workplace pension framework.
Despite this excellent start, there is much more to do. The 2017 review of automatic enrolment is an opportunity to take stock and also look to the future. So far automatic enrolment has been a success but there are major challenges ahead with both staging and phasing yet to be completed.
The DWP’s statutory review of automatic enrolment is looking at five areas, coverage, engagement, contributions, the charge cap and technical operation of the policy. The PLSA is engaging with the DWP and the advisory group in order to ensure that the voices of pension schemes are heard by Government. Our response to the initial review questions is below, in which the Association argues for an increase in statutory minimum contributions to 12 per cent over the medium term.
The Pensions and Lifetime Savings Association offers web based guidance for employers on automatic enrolment, find out more.