The Pensions Act 2008

One crucial change in UK legislation from a Corporate Responsibility perspective is the Pensions Act, passed in 2008, coming into effect in 2012. The area of the act that is of particular interest for businesses is the section regarding pension contributions.

As of 2012 it will be law that employers must automatically enrol all employees - between the age of 22 and State Pension Age - in a workplace pension scheme, unless the employee actively decides to opt out. Businesses will have to contribute a minimum of 3% (On a band of earnings), and employees 4%, as well as a 1% contribution by the government in the form of tax relief.