Over half of respondents may postpone auto-enrolment

More than half (56%) of respondents said they will take advantage of the three-month window for postponement before auto-enrolling employees into a pension scheme, according to research by Mercer.

The research, which surveyed 300 of its employer clients with auto-enrolment staging dates in 2013 or later, also found that 43% of respondents have opted for statutory minimum contribution levels to their scheme, although 37% are looking to to comply with the Tier 1 self-certification requirements (which result in eventual contributions of 9% of basic pay).

Rachel Brougham, head of the auto-enrolment group at Mercer said: “Postponement is seen by many as a way of deferring costs and easing the ongoing burden on payroll and HR systems.

“However, it is not a case of one size fits all. Postponement can be used differently for different parts of the workforce, which, in turn, could further relieve the burden on payroll systems, for example, by aligning entry into the pension scheme with a complete pay period.”