One-fifth (22%) of employers are some way into planning for auto-enrolment, according to research by Mercer.

Among 200 private sector and public sector organisations, only 1% have already implementing their plan for auto-enrolment and another 1% are almost ready to deliver subject to final regulations.

Only 2% of survey respondents said they plan to level down benefits as a result of auto-enrolment.

Almost one-fifth (16%) plan to maintain current levels for existing members, and plan to introduce minimum contributions for new hires and auto-enrolled employees.

The majority (54%) of respondents are planning either to maintain existing levels for everyone or allow employees a voluntary upgrade, subject to eligibility requirements.

Rachel Brougham, principal and head of Mercer’s auto-enrolment initiative, said: “For a successful and compliant introduction of the new requirements by 2013 employers need to be getting into the detail of the planning now.

“Delay too long and they could well find provider capacity exhausted, leaving them facing the prospect and consequences of non-compliance or trying to engage with the national employment savings trust (Nest) at the last minute.

“Provider capacity aside, employers need to consider the significant impact that auto-enrolment will have on HR and payroll systems and processes too.”

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