2012 Pension Reforms
The 2012 reforms are intended to encourage more people to save towards their retirement. They are part of a package of reforms resulting from the report of the Pensions Commission chaired by Adair Turner, now Lord Turner of Ecchinswell.
The Pensions Act 2007 made changes to state pensions to provide a better outcome for low earners and carers, and remove contracting out for DC schemes.
The Pensions Act 2008
- This introduced new obligations on employers to auto-enrol their employees into a pension scheme and contribute on their behalf.
- It created the Personal Accounts Delivery Authority (PADA), with powers to set up Personal Accounts - an occupational pension scheme to which all employers would have access.
The new employer obligations and Personal Accounts are planned to be introduced in 2012 - the PADA's working assumption is October 2012. Many important details remain to be finalised and further consultation is planned during 2009 and into 2010.
For guidance on the reforms see our:
- Questions and answers on employer obligations and Personal Accounts.
- Series of guides: For more information please speak to your Prudential account manager.
