Employers are more concerned about how they are going to deliver measures to comply with the 2012 pension reforms than they are about the cost of compliance.
Speaking in a panel debate at the Employee Benefits Pensions Summit 2011, Neil Carberry, head of employment and pensions at the Confederation of British Industry (CBI), said: “People coming up to 2012 know what the costs are. They are more concerned about delivery. The challenge is [particularly] in the small and medium-sized enterprise (SME) community.”
He added that how employers intend to react to the national employment savings trust (Nest) will be a fundamental decision for them to make because they already know they will have to auto-enrol employees into a qualifying scheme and make compulsory minimum contributions.
“The decision essentially is what do [employers] do about the vehicle if they do not have anything in place? There was a truism in government a few years ago that Nest is cheap. Nest is not cheap.”
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