Government to review auto-enrolment into pensions schemes
David Woods, June 03, 2010
The previous government's plans to auto-enrol staff into pension schemes is being reviewed by the new Government, according to pensions minister Steve Webb.
The minister also suggested an investigation into the National Employee Savings Trust (NEST) scheme, formerly known as personal accounts, which will mean lower earners will be giving access to defined-contribution pensions by their employer under law.
Speaking to the Financial Times, Webb said: "We are reviewing every contract that the Labour Government signed after 1 January, and the one to administer NEST is a large one worth over £1 billion over the next 10 years. We want to look at whether this is the best way to do this."
According to the Financial Times, the Government will hold a pensions review this summer. Webb said the review would look at whether the scope [of automatic enrolment] is right and whether the delivery mechanism [for personal accounts] is right."