Current News

PADA response boosts REC pensions campaign

The REC has been in regular dialogue with the Personal Accounts Delivery Authority (PADA) as part of the ongoing campaign on pensions reform. The aim is to ensure that 'auto-enrolment' measures do not create an administrative quagmire for agencies.

Commenting on this latest development, Anne Fairweather, the REC's Head of Public Policy  says:

 “We are pleased to see that PADA has recognised the bureaucratic hurdles that the new measures could create for self-employed and agency workers and are taking steps to address this. The REC has consistently flagged up the industry's concerns in terms of how the 2008 Pensions Act can work within the context of temporary staffing and we will continue to work closely with the Department of Work and Pensions (DWP) as well as with organisations such as PADA to influence the outcome.

 “In a post-Agency Workers Directive world, pensions reform will be the major regulatory challenge facing the agency market. The industry's voice is at the forefront of the debate and we will ensure that specific implications for flexible workers and for agencies are taken into account." 

The REC predicts that the turnover of agency workers opting out of the scheme will be far greater than for permanent employees. Earlier this year, the REC successfully lobbied against a clause which would have meant contributions would have had to have been handed to the pension scheme only to be clawed back again when the worker opted out.  Only the contributions of workers choosing to stay in the scheme will need to be paid off.

The REC will continue to make these representations to PADA and DWP in order to get this right and limit any negative impact on the industry.  For further information see http://www.rec.uk.com/about-recruitment/externalrelations/campaigns/pensions