The Bill is the second part of the package of reforms to the UK pensions system set out in the May 2006 Pensions White Paper, Security in retirement: towards a new pension system. The first part of the reforms, taken forward by Pensions Act 2007, included reform of the state pension.Key areas
- Proposes a duty on employers to automatically enrol jobholders into, and to contribute to, a qualifying workplace pension scheme
- Introduces the concept of personal accounts which are described as a 'simple, low-cost pension saving scheme' aimed at moderate to low earners who currently do not have access to a workplace pension scheme. This would be overseen by a Personal Accounts Delivery Authority
- Sets out a compliance regime for the new duties on employers.
Other measures relate to: the revaluation of deferred pensions, the additional state pension, pension credit, pension sharing on divorce or dissolution of civil partnership, the Pension Protection Fund and the Pensions Regulator.