Employers need to take very seriously proposed changes to the Pensions Bill, which are set to make the forthcoming new pensions regime for the UK even stricter.

Due for implementation in 2012, this will see a legal requirement for every company to offer their employees the opportunity to save in a workplace pension. As funding retirement pensions will be expensive for employers the Government is concerned that many may try to avoid the requirement by offering inducements such as a higher salary or a bonus payment to opt out of the scheme.

The proposed changes will make it illegal for an employer to do this – and the penalties for disobeying the rules will be potentially very heavy indeed, including the payment of any arrears in the contributions due.

Employers who currently don’t offer their staff a pension as an employee benefit may not fully appreciate the significance of the changes to come which will have some very important implications on the costs of being in business.

For further advice please contact Employment partner, Adam Marshall, on 01491 572138.