Despite coverage and warnings about the amount of work necessary in preparation for the implementation of auto-enrolment, less than a third of trustees, pensions managers and pension administrators are working towards 2012's deadline, finds Mercer.

In a survey, the financial consultant found that more than two-thirds of respondents had either not yet begun or had only just begun preparations for the changes.

Geraldine Brassett, principal in Mercer's outsourcing business, said the problem for many employers is that they are unaware of the complexity and detail involved in the changes. "2012 may still sound like a long way off, but unless they start to prepare soon, many companies may find themselves repeating the experience of A-Day and rushing to meet their deadline.

"The reasons employers commonly give for holding back are that they have not yet agreed their pension strategy or are awaiting the outcome of the election in case circumstances change. Others believe they have no action to take as they already operate auto-enrolment under their existing pension arrangements."

While schemes may be waiting for the outcome of the election, Brassett said it is important to remember that NEST, auto-enrolment and other requirements are already set out in legislation through the Pensions Act 2008, and these final regulations cannot be ignored.

"The legislation will require changes in current systems, processes and member communications, even for those companies that propose to continue with their current scheme and auto-enrolment process."

Meanwhile, specialist pensions law-firm Sacker & Partners LLP has outlined the key steps for auto-enrolment preparations.

"Preparation and groundwork is often the key to success - and this is no different where automatic enrolment is concerned," explained Alison Cribbs, partner. "Before even thinking about filling out the paperwork for staff, the employer needs to make sure he or she has a working knowledge of what exactly makes a scheme qualify and be aware of the various hurdles that are out there."

Sackers said employers must start identifying which of their workers are eligible jobholders and consider what pension they must provide in order to comply with their new duties.

However, contrary to what Mercer said, Sackers said employers should be wary of taking action too soon, as the outcome of the General Election may yet change the "rules of the game".

Mercer has produced a set of NEST and auto-enrolment briefing materials, along with a cost estimator tool, here.

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