Consultation on disclosure of information requirementsMonday, June 11, 2012
As part of the "red tape challenge" to remove unnecessary legislation, the Department for Work and Pensions (“DWP”) has issued for consultation draft regulations bringing into line the current obligation regarding disclosure of information with the auto-enrolment regime.
One of the key provisions of the draft regulations concerns basic scheme information that currently has to be provided to new joiners within two months of joining. Under the auto-enrolment regime, employees who are auto-enrolled have one month within which to opt out of the pension arrangement in which they are auto-enrolled.
The draft regulations amend the period within which basic information has to be provided to the member from two months to one month to enable members to make an informed decision as to whether they want to opt out or not. The DWP acknowledges that some employees may not receive the information in time, but it considers that a sufficiently high proportion of employees will benefit from the changes.
Thank you for all your assistance in helping to meet the deadline for the capital reduction exercise – your professionalism and friendly approach was appreciated.
Finance Director - Leading UK Company