The Government has failed on its pledge to make stakeholder
pensions a ‘simple, low cost and flexible’ means of saving for retirement.
Research by the Engineering Employers’ Federation (EEF)
suggests that smaller companies are struggling to provide employee access by
the deadline of 8 October.
Many who are encountering employee pensions for first time
are also having difficulty knowing what they are supposed to do.
In response the EEF has published a guide that answers many of
the questions raised during 18 months of national consultation.
EEF deputy director of employment policy, David Yeandle,
believes the main problem is a lack of guidelines within the legislation.
“There’s a requirement under the legislation to consult employees but there’s
no guidance given to employers about what this should involve,” he explained.
“It leaves implementation totally open to employers who then query the basis by
which they are doing it.”
By Philip Boucher