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Making auto enrolment work?

28 October 2010

The change in Government left auto enrolment and NEST hanging in the balance. Following the publication of an independent review earlier this week, it appears that it is full steam ahead with auto enrolment and NEST.

The good news is that a 3 month waiting period has been introduced before the auto enrolment requirement kicks in, and some of the thresholds have been increased (the earnings threshold at which an individual is auto enrolled has been increased to match the income tax personal allowance; the threshold for pension contributions to become payable matches the National Insurance primary threshold).

However the not so good news for smaller employers is that the requirements apply to all employers irrespective of size.

It still seems that many of the principles which caused concern for employers in terms of costs and administrative burden remain.

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