Pensions Act 2008 receives Royal Assent
The Pensions Act 2008 received Royal Assent on 26 November 2008. The Act implements a key element forming part of Lord Turner’s Pension Commission’s recommendations to help more people save for retirement by requiring that from 2012 workers will either be automatically enrolled into their employer’s workplace pension scheme or entered into the new Personal Accounts scheme. The primary aim of the Pensions Act 2008 is to enable and encourage more people to build up a private pension income, to supplement the basic State Pension. As from 2012:
– employers will have to automatically enrol qualifying employees into a personal accounts scheme or their own qualifying occupational or personal pension scheme, provided it meets minimum standards;
– employers will have to pay compulsory minimum contributions on behalf of their employees, although these requirements will be phased in over several years;
– employers will not be able to ask job applicants at interview whether they plan to opt out of auto-enrolment or offer financial inducements to their employees to opt out;
– employees will have the right not to suffer any detriment because of their employer’s breaches of the regime, but this specifically excludes a detriment arising from an unfair dismissal.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
