Last week the Personal Accounts Delivery Authority (PADA) announced personal accounts would come into effect from October 2012 - but only 16% of third-sector organisations have considered the effect the forthcoming legislation will have on their pensions policy.
Research from the Association of Chief Executives of Voluntary Organisations (ACEVO) shows only a third of charities have considered a strategy they will adopt in preparation for personal accounts - which will require the employer to contribute 3% of employees' salaries into personal accounts and employees to contribute 4%. A further 1% will be accrued through tax relief. Fifteen percent of respondents had not heard of the pensions legislation at all.
Seb Elsworth, head of strategy at ACEVO, said: "The survey figures are alarming; 2012 is a key date for organisations across the public and private sectors. Third-sector leaders need to begin addressing the impact of the new legislation both in terms of their organisational strategy and the implications for staff."
However, 82% of third-sector employers offer a pension scheme: of these, 95% contribute towards it while 67% have considered the value of their current scheme.
Third sector unprepared for 2012 pensions legislation
Almost two thirds (63%) of charities have not taken into account the impact 2012 pensions legislation will have on their organisation.
