The government will amend the Pensions Act 2008 to ensure that employees with access solely to a DC pension do not have their auto-enrolment deferred, even if they are in a hybrid scheme.

Current rules allow companies with DB or hybrid schemes to defer auto-enrolment until 2017, but the government wants to ensure that those arrangement are only used for employees that have access to DB.

The funding requirements for DB and hybrid schemes mean employers cannot take advantage of phasing-in of contributions, unlike employers using a DC scheme.

The amendment to the Pensions Act 2008 will make sure that only employers offering defined benefits to an employee, whether in a DB or hybrid scheme, will be able to defer auto-enrolment until 2017. Under the change, all eligible workers with no access to DB must be auto-enrolled from their staging date.

Minister for Pensions Steve Webb said: “It’s vital that firms comply with the spirit as well as the letter of the law. I’m sending out a clear message that all workers should be allowed to save for their retirement as soon as possible.”

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