New auto-enrolment pension rules needed for ‘all workers over 18’

The government has been urged to change pension rules amid the ongoing cost of living crisis. After winning the general election last week, the Conservative Party government has been urged to act immediately on a much-needed pension boost for UK households.

Clive Pugh, partner at Burges Salmon, told the Daily Express there are some previous government policies that new Labor ministers could take forward. He said: “Many of our clients have a long list of issues where early engagement from the new Pensions Minister would be welcome.

“For defined benefit (DB) schemes, the most immediate prompt will be to view the Pensions Regulator’s new DB funding code (to accompany the regulations coming into force for schemes with valuation dates from 22 September 2024).”

READ MORE NS&I warns premium bondholders who haven’t earned ‘for the last 54 years’

And expanding auto-enrolment is another issue, Mr Pugh said, as new rules have been “enacted but not yet in place” to extend it to all workers aged 18 and over. It currently applies to workers aged 22 and over.

“But there are a number of other legal issues outstanding and ongoing,” he said. Michael Hayles, another partner at Burges Salmon, said: “With significant reforms to workforce law promised, we can see the new Labor government look again at workplace pension rights – possibly increasing contribution rates for enrollment automatic or extend obligations to try to address the longer term. concerns about the adequacy of pensions”.

And he asked: “With a wave of public service outsourcing promised, will we see more wholesale changes to existing public service pension arrangements? Climate change is likely to be a key area of ​​focus – the Labor Party manifesto has pledged to make Britain. the “green financial capital of the world” and to require pension funds and other financial institutions to “develop and implement credible transition plans that align with the 1.5C target of the Paris Agreement”, but what will this requirement look like and how will it be implemented?”