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UK : All firms to offer pensions
A government decision means that every UK business should offer its own pension scheme to eligible staff or enroll them in the new National Employment Savings Trust (NEST). According to government figures, this will mean that some four to eight million people will be saving for their retirement for the first time.
If employers do not provide a suitable pension scheme, employees will have to be automatically enrolled in Nest within three months of joining the organization, with both parties being obliged to contribute to the fund. The British Chambers of Commerce described the three-month ‘grace period’ as being particularly beneficial to firms with a high staff turnover since they will not have to sign up employees who will not then continue with these pension schemes. At the same time, the Federation of Small Businesses criticized the administrative workload which the move will impose on firms of fewer than 10 employees.
Nest will come into operation next year with the largest employers being the first to join.
Source : bbc.co.uk/27.10.2010