George Osborne announced in the autumn statement that two key elements of Workplace Pension Reform will be delayed.

Staging dates

Employers with fewer than 3,000 employees will see their staging put back, whilst employers with fewer than 50 employees will have staging dates delayed until “the next parliamentary session” (i.e. until after May 2015).

Employers with more than 3,000 employees will not see any changes to their staging dates. The pensions minister, Steve Webb, said the final timetable would be issued in January 2012.

Phasing

Phasing is the gradual increase in both the minimum employer contributions and the minimum total contributions required to satisfy the duties under Workplace Pension Reform.

The original plan required 1% employer contributions and 2% total contributions from an employers’ staging date until October 2016. From October 2016 until October 2017 minimum contributions of 2% employer and 5% total were required. From October 2017 the minimum contributions would have been 3% employer and 8% in total.

The rise in employers’ minimum contributions from 1% to 2% from 1 October 2016 will not now take place. There has been no confirmation of a new date and no clarity as to whether increases to total contributions will also be delayed.

Our comprehensive guide to Workplace Pension Reform is now available as a webinar - click and follow link.   Other new dates will be communicated as soon as the timetable is released. In the meantime, if you have any further questions please contact me!

John Davenport, Cassons Pensions Manager