Delyn MP David Hanson has welcomed pension changes that will move millions of workers a step closer to getting a workplace pension for the first time.
Final rules for the pensions’ reform were put before Parliament this week.
This is the most radical change to workplace entitlements since the introduction of the National Minimum Wage – for the first time employers of all sizes would be joining employees in paying into a pension scheme.
The changes kick off in 2012 with business of over 120,000 employees paying into a pension scheme. This will be staged through to 2016 to include small businesses of 50 or fewer employees, with start up small business given additional time to prepare to comply.
David Hanson said:
“These reforms are vital in giving thousands of people locally the chance to save in a pension, and mean all employers will be required to pay into a pension for their workers for the first time.
“The cost to all of us of doing nothing in the face of an ageing society is too great to ignore. Currently 14 million people get no contribution from their employer towards a pension and around 7 million people are not saving enough for their retirement.
“These reforms will give everyone the chance to build up a pension. It is the biggest change to support for working people since the introduction of the minimum wage.
“Along with our changes to the state pension later this year, this will ensure that pensions are fair and sustainable in the longer term.”