The Government should reconsider the law to make it easier for employers to communicate with their employees when it comes to pensions, says the National Association of Pension Funds (NAPF).

The plea comes following the NAPF's publication of new research, Talking Pensions, at its annual conference in Manchester, which has revealed that although 98 per cent of employers feel they should have a role in providing information and support to their employees regarding pensions, 57 per cent also sees the law as an obstacle that prevents them from doing so.

Talking Pensions has found that, in practice, 64 per cent of employers are wary of communicating on investment issues for fear of being held liable for investment outcomes. Sixty-two per cent also feel inhibited when it comes to communicating on pensions because of Financial Services Authority (FSA) regulations, and 62 per cent again are worried that their staff might mistake generic guidance as financial advice.

The NAPF's survey showed that 98 per cent of employers believe amending the legal regime would help improve communications, and 94 per cent said that clearer guidance from The Pensions Regulator (TPR) and the FSA would help. Sixty-nine per cent of employers also felt that legal indemnity would improve the situation.

Nigel Peaple, director of policy at the NAPF, commented: "Employers want to help and guide their employees on planning and saving for retirement but fear falling foul of the law.

"The Government must examine why employers feel unable to talk about the pensions they offer and be prepared to change the law if necessary."

Interestingly, 75 per cent of employers reported feeling more comfortable discussing private healthcare than pensions, and 73 per cent were happier with the subject of life assurance.

The NAPF has recommended that the Government undertake a review of whether it could be made easier to freely communicate with their employees on all pension issues and if employers could be protected from being held liable for information or advice given.

The Pensions Regulator has voiced its support for the NAPF's call, with Tony Hobman, chief executive at TPR who is due to join a panel discussion at the conference tomorrow, commenting: "We know that employers have a key part to play in pension provision now, and that they will play an even more significant role from 2012 when millions more people will have access to a workplace pension scheme, many for the first time, and we agree with the NAPF that there is a need for greater support for employers.

"So as part of our wider campaign to increase employer engagement with DC schemes, we have recently published a guide for employers, together with the FSA, called 'Talking to your employees about pensions'.

"We also welcome the positive assessment that 98 per cent of employers surveyed believe they should have a role in providing advice and guidance to their employees on pensions.

We will be working with industry bodies such as NAPF, CBI and EEF as we develop clarity of information for employers".

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