The Association of Consulting Actuaries (ACA) has claimed that the government missed an opportunity to boost DC contributions in its Pensions Bill, which was announced in the Queen’s Speech on Monday, 14 October.

In a survey conducted earlier this year, the ACA found strong support for “bolder” measures around contributions that is says could have probably gathered cross-party support.

It has argued that the Bill should have included steps to build on auto-enrolment contribution levels as they are generally still too low to deliver the levels of income future retirees will need.

The survey found that over a half of the 308 employers questioned support minimum automatic enrolment contributions being increased to a minimum of 10 per cent of total earnings, split evenly between employers and employees, from April 2021.

Eighty five per cent of companies also said that automatic enrolment into pension schemes should be extended to those aged 18 or over, with 82 per cent also supporting contributions beginning from the start of earnings, as opposed to only on earnings above £6,136 annually, as they are set at present.

ACA chair, Jenny Condron, said that whilst smaller employers might need some help from the government in supporting higher pension contributions, it would be wrong to halt the progress made with auto-enrolment, when much still remains to be done to increase pension savings above present levels.

She added that the ACA’s recommendations would not require major amendments to the bill and could be added during its passage through Parliament.

However, the survey findings did reveal support for other measures in the bill.

Around 76 per cent of employers surveyed said that all pension schemes should be required by legislation to provide data to a pension dashboard; 78 per cent support a new funding code for defined benefit schemes that provides a more straightforward fast-track route to demonstrate compliance, with schemes also able to choose a more bespoke approach; and 48 per cent back the introduction of a collective defined contribution pension scheme regime, with just 13 per cent disagreeing with the idea.

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