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<p>Section 54 of the Pensions Act 2008 prohibits employers from taking any action
for the sole or main purpose of inducing a worker to leave a workplace pension scheme.</p><p>The
Government takes potential inducement by employers very seriously. The Pensions Regulator
(TPR) is responsible for all matters relating to employers’ compliance with their
enrolment duties, including investigations into individual cases of potential inducement
by employers.</p><p>Through automatic enrolment we are delivering a fundamental shift
in workplace pension saving that is changing the way that people are enabled to save
for retirement. Already 100,668 employers have completed their declaration of compliance
with the Regulator, resulting in more than 6 million eligible jobholders being automatically
enrolled into a qualifying pension scheme.</p><p>The law relating to inducements is
an important safeguard for workers and the Regulator has statutory powers of investigation
and enforcement it can use in appropriate circumstances. We are working with the Regulator
to monitor the number and nature of possible inducement cases as the roll-out of automatic
enrolment continues. That will enable us to judge whether the current legislation
covering inducement, and the guidance and messaging provided by the Regulator, are
operating effectively to protect employees, and whether change may be appropriate.</p>
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