Intermediarie's awareness, understanding and activity in relation to workplace pension reforms
The workplace pension reforms are set out in the Pensions Act 2008 and were introduced in October 2012 with large employers being subject to the duties first. Large employers will be subject to the duties between October 2012 and February 2014, medium employers from April 2014 to April 2015 and small/micro-employers from June 2015. Under the reforms, employers will be required to automatically enroll certain members of their workforce, these are called eligible jobholders (those aged between 22 and State Pension age, working in the UK and earning more than £8,105), into a workplace pension scheme, unless the worker is already in a qualifying scheme.
Eligible jobholders can, however, choose to opt out of pension scheme membership. Other members of the employer’s workforce will be able to choose to join or ‘opt in’ to a pension scheme, and, if they do, the employer will have to arrange membership for them into a workplace pension scheme. The type of pension scheme into which they must be enrolled will depend upon the status of the worker.