Employee Benefits/Towers Watson Flexible Benefits Research 2012: Impact of legislation

Employers are finally coming to grips with how to adapt their flexible benefits systems to accommodate the arrival of pensions auto-enrolment, says Tynan Barton

The introduction of auto-enrolment from this October will see many employees enter a pension scheme for the first time, with both employers and employees making compulsory contributions.

Back in 2008, 39% of respondents did not know how the pension reforms would affect the way they viewed flexible benefits, but only 3% were deterred from introducing flex because of the reforms.

In 2011, 31% of respondents still did not know how the reforms would change their view of flex, but this year many have planned how to adapt their schemes for auto-enrolment, and only 13% do not know what they will do.

This year will also see the reduction of the lifetime pensions allowance from £1.8 million to £1.5 million from 6 April 2012. Almost 80% of employers have not considered using flex to provide alternatives for affected staff.

Employee Benefits
Employee Benefits

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