Mike O’Brien, minister for Pensions Reform, has appointed the Pensions Regulator to monitor personal accounts.
The regulator for all work-based pension schemes will monitor personal accounts as a whole. It will also ensure that employers meet their obligation to automatically enrol staff into a good workplace pension scheme.
Personal accounts will require employers to auto-enrol all employees into either an existing pension scheme or a personal accounts scheme. The minimum employer contribution allowed under the accounts scheme will be 3% of an employee’s wage.
Mike O’Brien said: “I believe the Pensions Regulator is well-placed to perform this important new role. It currently does an excellent job protecting pension scheme members while also demonstrating sensitivity towards the needs of businesses.
“Working with the Pensions Regulator, we will put in place a simple, proportionate compliance regime which ensures employers meet their obligations without imposing any unnecessary burdens,” he said.
David Norgrove, chair of the Pensions Regulator said: “We welcome the confidence in us shown by choosing us to undertake this task, which will be central to the success of personal accounts.”