Pensions Act 2008

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Pensions Act 2008 [1]
Royal Coat of Arms of the United Kingdom (variant 1, 1952-2022).svg
Long title An Act to make provision relating to pensions; and for connected purposes.
Citation 2008 c. 30
Introduced by Peter Hain
Territorial extent  United Kingdom
Dates
Royal assent 26 November 2008
Status: Amended
History of passage through Parliament
Text of statute as originally enacted
Revised text of statute as amended

The Pensions Act 2008 (c 30) is an Act of the Parliament of the United Kingdom. The principal change brought about by the Act is that all workers will have to opt out of an occupational pension plan of their employer, rather than opt in. A second change is the creation of a National Employment Savings Trust, a public pension provider for those who do not have an occupational pensions, which will function as a low-fee pension scheme in competition with existing funds.

Contents

Key provisions

Automatic enrolment

The cornerstone of the Pensions Act 2008 is the introduction of automatic enrolment. This provision requires employers to automatically enrol eligible workers into a qualifying pension scheme. [2] [3] The key aspects of automatic enrolment include:

National Employment Savings Trust (NEST)

The Act provided for the creation of the National Employment Savings Trust (NEST), a public pension provider designed to offer a low-fee pension scheme. NEST serves as an alternative for workers who do not have access to an occupational pension scheme through their employer.

Employer contributions

A key feature of the Act is the requirement for employers to contribute to their workers' pension schemes. The minimum contribution rates were phased in over time, starting at 2% of qualifying earnings and increasing in subsequent years. [5]

Implementation timeline

The implementation of the Pensions Act 2008 was staged over several years:

Commencement orders

The act was commenced in force over time by a number of statutory instruments between 2008 and 2018:

Compliance and enforcement

The Pensions Regulator was given responsibility for ensuring compliance with the new regulations. The regulator has the power to issue notices and penalties to employers who fail to meet their obligations under the Act. [6]

Amendments and future developments

Since its enactment, the Pensions Act 2008 has undergone several amendments and updates. These include changes to earnings thresholds, contribution rates, and the expansion of eligibility criteria. [5]

See also

State pensions Acts
Private pensions Acts

Notes

  1. The citation of this Act by this short title is authorised by section 151 of this Act.
  2. 1 2 Pensions, Department for Work and. "Explanatory Notes to Pensions Act 2008". www.legislation.gov.uk. Archived from the original on 25 September 2023. Retrieved 7 January 2025.
  3. Pensions, Department for Work and. "Explanatory Notes to Pensions Act 2008". www.legislation.gov.uk. Archived from the original on 25 September 2023. Retrieved 7 January 2025.
  4. "Pensions Act 2008" (PDF). Congreso de los Diputados. Retrieved 7 January 2025.
  5. 1 2 3 "Summary: Workplace pensions and Automatic Enrolment: employers' perspectives 2022". GOV.UK. Retrieved 7 January 2025.
  6. "Compliance and Enforcement Strategy for Employers Subject to Automatic Enrolment Duties". The Pensions Regulator. June 2016. Retrieved 7 January 2025.

References