DWP widens employer options

government proposes more choices for businesses to encourage their employees to save

The Department for Work and Pensions (DWP) is considering various forms of compulsion to increase pension saving in the UK. Among the options under review are automatic enrolment into employer pension schemes for new employees, albeit retaining an opt-out if they decide against membership, and the facility for staff to commit potential future earnings towards pension savings. Where UK defined contribution (DC) schemes are operating such an automatic enrolment structure, participation has increased to about 90% compared with 50% among companies where staff have to actively opt in to schem...