Business groups tell MPs: Simplify auto enrolment rules

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Retirement wooden sign with a beach on backgroundBusiness groups told the Work and Pensions Committee that auto enrolment is going well but the rules should be simplified, and payroll providers do not fully understand the new pension rules.

Since the scheme began in 2012, the number of people who have opted out of the pension scheme is less than expected.

Auto enrolment covers UK workers who don’t already have a workplace pension, earn more than £10,000 a year and are aged between 22 and the state pension age.

So far, more than 4.7m workers who didn’t previously have a workplace pension have been enrolled by about 34,000 employers.

The complaints about auto enrolment were:

  • it’s too complicated and costly to administer, especially for small employers who potentially don’t have their own pension experts
  • the rules aren’t written in plain English which makes it difficult for workers to understand
  • although payroll software is catching up with the new pension rules, more needs to be done


Source:, 19/11/2014