Pension project should be simplified, says ACA

Date: 31st August 2010

Small business owners operating in the UK could be among those interested in the recent comments of one industry body regarding pension auto-enrolment.

The Association of Consulting Actuaries (ACA) has called for the proposals to be simplified in a bid to ease the administrative burden on smaller firms.

In fact, 60 per cent of people surveyed by the organisation believe that firms with fewer than five employees should be exempt from auto-enrolment altogether.

The ACA has now called for a simpler initiative to be drawn up after 75 per cent of its survey's respondents deemed the planned regime "complex".

ACA chairman Stuart Southall said: "Whilst the full cost of auto-enrolling all eligible employees will not hit most organisations until 2017, it is only right that the costs of auto-enrolment, including the administrative challenges, are addressed and tested as soon as possible."

Auto-enrolment is set to be rolled out in 2012, in a bid to get more people in the UK saving for their retirement.

Posted by Jacob Williams