Key Benefits The Bill would enact the remainder of the landmark pensions reform package set out in the Government's May 2006 White Paper, Security in retirement: towards a new pension system, including providing for the establishment of a new scheme of personal accounts. Automatically enrolling eligible workers into a pension would tackle the current behavioural barriers to pension saving, and the difficulty of making the right choice; individuals would have the right to opt-out; The introduction of a minimum employer contribution would improve incentives to save and increase pension participation; The introduction of a new scheme of low-cost personal accounts would give those without access to a good quality pension scheme - in particular, low to moderate earners - the opportunity to save; an estimated 7 million people are currently not saving enough for their retirement; An independent Delivery Authority, utilising the skills and experience of the private sector, would determine how the new scheme is built and run. Powers to introduce mandatory employer contributions into a qualifying pension scheme, and to require the automatic enrolment of eligible employees into qualifying schemes; Powers to enable the Personal Accounts Delivery Authority to move from acting in an advisory to an executive capacity; Powers to set up the personal accounts scheme.

Act of Parliament

Territorial Extent
United Kingdom
Theme
Economic Stability

Its provisions relate to matters that are reserved to the UK Government for Scotland and Wales, but devolved in Northern Ireland.

Related Documents

Existing Legislation in this area

Social Security Administration Act 1992
Social Security Contributions and Benefits Act 1992
Pension Schemes Act 1993
Pensions Act 1995
Welfare Reform and Pensions Act 1999
Civil Partnerships Act 2004
Pensions Act 2004
Pensions Act 2007 - set out a new long term structure for the UK pensions system. It focused primarily on the state pensions system, making it fairer, more generous and more widely available. The provisions in this Pensions Bill will enact the remainder of the Government's pensions reform package.

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