Product category:
Legal / regulation
News Release from: Standard Life Bank | Subject: Pensions bill
Edited by the Insidemoneytalk Editorial
Team on 07 December 2007
Pensions Bill - ?50,000 penalty for
employers who ignore personal accounts
The personal accounts legislation is being introduced through Parliament in the Pensions Bill which was issued today.
The Bill gives the Pensions Regulator powers to fine employers up to £50,000 Fines may be imposed if employers don't make payments into personal accounts or do not automatically enrol, or re-enrol, eligible employees into personal accounts
This article was originally published on Insidemoneytalk on 7 Dec 2007 at 8.00am (UK)
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The Pensions Bill published today will remove the requirement for employers
to designate a stakeholder pension scheme.
Andrew Tully, Marketing Technical Manager, Standard Life Assurance Limited, said: 'While this suggests there may be significant fines for employers who do not operate personal accounts correctly, it raises larger questions.
A good compliance regime around personal accounts is a necessity, and it is unclear how pro-active that regime will be.
Given the cost restrictions within the personal accounts charging structure it may be a 'light touch' regime relying on whistle-blowing from employees and the threat of hefty fines for employers.
This type of regime may offer scope for unscrupulous employers to persuade employees to not join - either by threat or inducement.'.
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