Nigel Peaple, Director of Policy and Research at the Pensions and Lifetime Savings Association (PLSA) comments on the announced changes to the Coronavirus Job Retention Scheme:
“Since the introduction of the Coronavirus Job Retention Scheme, the Treasury has given vital support to furloughed workers’ pension contributions that have no doubt eased financial hardship and anxiety for the millions affected. However, this support will cease from 1 August. While this will place some financial strain on employers, we recognise that the support under the furlough arrangement needs to be reduced over time, and this multi-step plan should give most employers and schemes time to plan and adjust.
“Automatic enrolment (AE) is a resounding policy success, helping an additional 10 million people to save into a pension and ensuring that 90% of eligible private sector workers are now members of workplace pensions. The government’s continued commitment to the AE policy in the most challenging of economic circumstances underscores the essential part of the employment package AE contributions now are. Ensuring that contributions to workplace pensions are maintained will in the long-term help more savers achieve a better income in retirement.”
Mark Smith, Senior PR Manager
020 7601 1726 | [email protected]k
Steven Kennedy, PR Manager
020 7601 1737 | 07713 073024 | [email protected]