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.
It is subject to Parliamentary approval of reforms to be published in the forthcoming Pensions Bill.
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.
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“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.”
