New pensions law will increase employers' costs

Thu 27 Nov 2008

The Pensions Act, which became law yesterday, will increase employers' costs, a private pensions provider has warned.

Standard Life has claimed firms' costs will rise "significantly" when the Act comes into effect.

"This Act brings massive new responsibilities for employers," said senior pensions policy manager, Andrew Tully.

From 2013, companies will have to automatically enroll their workers into a pension scheme, into which they contribute a minimum of three per cent.

Employees can opt-out of the scheme should they choose to - if they do companies need make no contributions.

Minister of state for Pensions Rosie Winterton told the Professional Pensions Show: "It is absolutely vital that we continue to ensure that the right regulatory regime is in place to give people confidence in the pension system but without being overburdening to industry."

The liberal democrats have criticised the government for spending an increasing amount on public service pensions, while planning to increase the minimum retirement age.

Pensions for secretary jobs in Manchester will differ from employer-to-employer.