REC meets DWP to discuss pensions’ implementation following consultation launch
The REC met last week with the Department for Work and Pensions to discuss the issues facing the recruitment industry with regards to the introduction of auto-enrolment pension schemes. This follows the publication last week of the DWP's latest consultation on the scheme which is due to come into force in October 2012.
The REC has led an intensive lobbying campaign to ensure that the specific implications of auto-enrolment for temporary staff are understood and reflected in the final regulations. The recent review by the coalition Government included a three month waiting period before auto-enrolment applies to temporary workers which is a huge step in the right direction.
Commenting after the latest meeting with DWP officials, Lorraine Laryea, REC Solicitor and Commercial Advisor, says:
"We all understand and support the need to address the 'pensions time-bomb'. However, the particular nature of agency work must be reflected in the final regulations. We have made real progress on this over the last year and the three month waiting period was a significant win for the industry. The latest meeting with Government officials was an opportunity to drive forward on some of the other issues for recruiters.
"One specific concern that has been flagged up is any potential liability on employers and agencies if the default pensions scheme (NEST) for auto-enrolment subsequently turns out to have not been in the best interests of the individual worker. We will be pushing for safeguards to be included which will protect employers who opt to use NEST."
The REC will continue to take forward the views and concerns of the industry in order to limit the administrative impact on recruiters. Copies of the latest DWP’s consultation document are available at http://www.dwp.gov.uk/docs/dc-default-option-consult.pdf.