Forcing workers not to save will be "illegal"
Tue 24 Jun 2008
24/06/2008
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Forcing employees not to save or opt out of company pensions will become illegal, the government has announced. The Department of Work and Pensions has said decisions to save in a workplace pension need to be taken without any unfair pressure. "It is very important that people are allowed to meet their retirement expectations by building up the savings they need," commented minister of pensions reform, Mike O'Brien. "That's why we want to prevent employers from trying to pressurise staff or tempt them with 'live for today' inducements into opting out of pension saving." The department intends to amend the current pensions bill to include the inducements ban when it reaches the House of Lords. From 2012, employers will introduce auto-enrolment in their company pensions. If the new amendment is accepted, firms could face penalties if they failed to comply with the law's guidance. Alan Duncan, Conservative Party, has said the current means test by which pensioners are assessed is: "Complicated. Intrusive. Degrading."
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