Nov
19
2010
Umbrella company contractors 'should still have choice of pension'
Posted by Sarah Putt
Employers have been told that they should not be disempowering an umbrella company contractor with their pension choices, ahead of the automatic enrolment pension scheme.
John De Groot, a former chief executive of the West Sussex Enterprise Agency, believes that workers should be encouraged to find schemes themselves which nudge towards self-reliance.
This will be much better than "allowing individual apathy towards opting out to increase pension scheme membership", in his estimation.
Mr De Groot also noted to contractors with umbrella companies that the automatic enrolment pension scheme will not come into effect until around 2014, so there is plenty of time for businesses to look into the factors of this plan and decide how best to implement it.
He added: "As with many previous schemes, it will be the small businesses that don’t prepare that will end up spending more time and resources trying to catch up."
The aim of the proposal is to have all firms and their staff fully enrolled in a pension scheme by 2017.
Employers have been told that they should not be disempowering an umbrella company contractor with their pension choices, ahead of the automatic enrolment pension scheme.
John De Groot, a former chief executive of the West Sussex Enterprise Agency, believes that workers should be encouraged to find schemes themselves which nudge towards self-reliance.
This will be much better than "allowing individual apathy towards opting out to increase pension scheme membership", in his estimation.
Mr De Groot also noted to contractors with umbrella companies that the automatic enrolment pension scheme will not come into effect until around 2014, so there is plenty of time for businesses to look into the factors of this plan and decide how best to implement it.
He added: "As with many previous schemes, it will be the small businesses that don’t prepare that will end up spending more time and resources trying to catch up."
The aim of the proposal is to have all firms and their staff fully enrolled in a pension scheme by 2017.