Small firms to face more admin?

All UK businesses will be required to offer pension schemes by 2012, according to a new government review.

A report from the BBC, of a review to be published later in the week, has revealed that all employees aged over 22 who earn upwards of £5,035 should be given the option of entering into a company pension scheme.

Companies will be given three months grace to implement the proposals, after which employees will be automatically registered within the new national state scheme.

The Federation of Small Businesses (FSB) has previously criticised the plans, arguing that they would simply increase the workload of businesses in the UK.

John Walker, chairman of the organisation, said: "The FSB welcomes initiatives to help people save for their future in a pension but we are still concerned the new automatic enrolment pension scheme is going to be an administrative headache for small firms – particularly micro firms – and will cost them in time and money."

Posted by Christopher Evans

Published on: October 26, 2010

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