Employers will have to enrol eligible employees into a pension scheme and pay into it for them, under a major reform of pension law which starts to come into effect next year.
With people living longer than ever before, the estimates are that the number of retired people in the UK will rise by more than a third by 2050. The Pensions Act 2008 aims to encourage people to save for their retirement, rather than relying on the state pension, by placing a duty on employers to provide workplace pensions.
Philip Richardson from Stephensons' Solicitors, which provides the legal helpline for the National Day Nurseries Association, says, 'The Act introduced a new duty for employers to automatically enrol all their eligible workers into a workplace pension scheme and make a minimum contribution as an employer. This means that from 2012 there will be a staged process - starting with the largest companies - to ensure that pension schemes are provided and that employers make a contribution to this for staff.
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