14th August 2014
Four million workers have now been automatically enrolled into a workplace pension according to the Pension Regulator. The regulator’s monthly declaration of compliance report shows that more than 21,000 employers have now completed their declaration of compliance (registration) informing the regulator how they have met their duties.
The key statistics show that 21,303 employers have confirmed that they met their auto-enrolment duties
4,032,000 eligible jobholders have been automatically enrolled
8,602,000 workers were already members of a qualifying scheme
423,000 eligible jobholders have had the defined benefit or hybrid scheme transitional arrangements applied to them
4,443,000 workers did not fall into any of the above categories
The Newcastle based firm construction to electrical services firm Metnor Group was one of the employers which helped take automatic enrolment to its latest landmark. The company employs around 150 workers.
Finance director Adam Langman said: “We already offered access to pension schemes to our workforce with a take up of only 40%. Another 50% began saving as a result of being automatically enrolled and to date our opt out rate has been low. It’s great to be able to reward our workforce and help them save for retirement.”
Pensions minister Steve Webb has hailed the figures. He said: “This latest milestone figure shows how saving in a workplace pension is now becoming the norm. Four million people have now been automatically enrolled into a workplace pension with many more saving for their retirement for the first time or saving more as a result.”
The regulator is urging all employers to find out when they need to be ready. The date an employer’s duties go live is set in law – it is called a staging date. It is simple for an employer to find out their staging date on the regulator’s website using their PAYE information.
The Pensions Regulator’s executive director of automatic enrolment, Charles Counsell said: “A seaside hotel, a scrapyard, hi -tech factories, colleges, care providers, hairdressers and a designer all featured amongst the wide range of employers completing their duties this month. It is a mix which illustrates just how automatic enrolment is gradually becoming part of the fabric of running every type of workplace.
“This summer, we have begun the process of writing to hundreds of thousands of small employers informing them when they need to be ready to meet their new workplace pension duties. This letter is a call to action for employers. It directs them to the information they need to prepare for automatic enrolment.”
Tom McPhail, head of pensions research at Hargreaves Landown says: “This shows that nearly 4.5 million employees are missing out on workplace pension membership. In addition there are around a further 4.5 million self-employed in the UK who also don’t enjoy the benefit of being auto-enrolled into an employer funded workplace pension. Only last week the DWP produced updated analysis which shows that 11.9 million people are under-saving for retirement. Very broadly, anyone who is not contributing at least 12% of their salary a year to a pension probably isn’t saving enough. In the meantime, auto-enrolment has been cited as one of the downward pressures on earnings growth.”