Pensions Bill

You are here: Home / Issues / Pensioners / Pensions Bill
On 5 December 2007 a Bill entered Parliament to take forward measures aimed at encouraging greater private saving. Three key features of the Pensions Bill are as follows: 

3% Employer Contribution - For the first time all qualifying employers will be required to contribute a minimum of 3% (on a band of earnings) to an employee’s workplace pension scheme. This will supplement the 4% contribution from the employee and around 1% from the Government in the form of tax relief.

Personal Accounts Scheme - From 2012 the Government plans to introduce a new low cost saving vehicle, the personal accounts scheme, aimed at employees who don’t have access to a good quality work based pension scheme - in the main, median to low earners.

Automatic Enrolment - From 2012, the Government plans that all eligible workers, who are not already in a good quality workplace pension, will be automatically enrolled into either a qualifying pension scheme or into the personal account pension scheme.

Automatic enrolment means instead of choosing whether to join a workplace pension scheme provided by their employer, all eligible workers will have to actively decide not to be in a scheme, if for any reason they feel saving in a scheme isn’t right for them.

For more information on the Pensions Bill visit the Pension Service's Frequently Asked Questions page.

Rosie Winterton MP for Doncaster Central
This site is funded from the Parliamentary Members Communications Allowance
website by Hudson Berkley Reinhart Ltd