4 in 5 want to remove minimum AE age

Four fifths (80 per cent) of pension professionals favour removing the auto-enrolment minimum age criteria, according to new research.

The survey from The Society of Pension Professionals (SPP), detailed in its Simplifying Automatic Enrolment report, also found that two thirds of respondents wanted AE to be extended to all employees up to age 75.

Almost three quarters (74 per cent) of surveyed professionals thought employers should have the capability to statutorily enrol any employee they wanted too.

More than eight in ten (85 per cent) supported proposals to use pay from the previous pay period to determine eligibility for auto-enrolment, while 84 per cent of respondents wanted minimum employer contributions to increase over time from 3 per cent to 6 per cent of earnings.

Almost two thirds (63 per cent) thought employers should be allowed to accept employee opt-out elections up to three months after enrolment.

SPP said there was also “overwhelming support” for proposals that there need be no enrolment notice or opt-out at the point of a TUPE transfer, with just 6 per cent opposed to the idea.

“Any employees being TUPE’d would maintain any qualifying pension scheme membership, with non-members included within the receiving employer’s re-enrolment process,” explained the report.

The SPP also suggested the modernisation of death benefit and other payments, stating that “moving away from paper-based evidence towards electronic means was almost universally supported”.

    Share Story:

Recent Stories

Re-shaping the future of fiduciary management?
Pensions Age Editor, Laura Blows, speaks to River and Mercantile co-head, Ajeet Manjrekar, about the future of fiduciary management in the UK

Pensions Age Editor, Laura Blows, speaks to Christopher Rossbach, CIO and Portfolio Manager of the J. Stern & Co. World Stars global equity strategy about the investment opportunities for global equities in these unprecedented times.

Fixed income markets during coronavirus disruption
Laura Blows speaks to Ewan McAlpine Senior Client Portfolio Manager, Royal London Asset Management about fixed income markets during coronavirus disruption