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Employers warned to take action on compulsory pensions changes
Posted: 27 January 2011
Author: Richard Hartley
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ABCO has launched a brand new web site packed with information about NEST and the implications for employers. The site, www.pensions-reform.co.uk explains in detail the eligibility criteria and the employers' obligations.
Click to find out more about NEST and the 2012 pension changes (external web site), or contact our independent advisers today for impartial assistance and a no-obligation consultation.
Alan Boswell & Company is one of the UK's leading independent financial advisers with a team of consultants and financial researchers offering unbiased advice to businesses and individuals on a whole range of investments, protection and other financial services
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Leading Norwich-based IFA, Alan Boswell and Company (ABCO), is warning employers to wake up to realities of new pension legislation due in 2012.
From October 2012, there will be new legal duties imposed on employers to provide adequate pension schemes for their employees:
- Employers will be required to enrol all eligible employees in a pension scheme.
- It will be compulsory for employers to make pension contributions for eligible employees.
- The pensions regulator will enforce the new rules.
- Employers will be free to arrange their own pension scheme or can effect a scheme based on the a government initiative - the National Employment Savings Trust (NEST).
- It is likely that most employers will require professional financial advice to help choose the best option and comply with these new regulations
What should employers do?
John Wake, a senior independent financial adviser at ABCO, is urging employers to make things easy for themselves by seeking out independent financial advice at an early stage:
"Demand for pensions advice is bound to surge once the deadline is looming. It's no use just reading about this change and then putting it off until next year. Employers can make things a lot simpler by talking to their advisers at an early stage."
Wake explains that putting together the correct solution requires careful assessment of a firm's requirements and can involve quite a lot of planning:
"That's why we are recommending that companies talk to us now about their pensions and about employee benefits arrangements in general, so that we can set the wheels in motion."