Employers' strong support for NPSS
Most employers are in favour of automatic enrolment of employees into pension plans, according to a new report.
The government have proposed a national pension savings scheme (NPSS) whereby employees would be automatically signed up and would contribute four per cent of their salary combined with three per cent from employers and one per cent from the government.
Research by the Department for Work and Pensions found that 60 per cent of employers strongly support a NPSS believing it will encourage saving for retirement, help overcome inertia and increase the take-up of pensions in general.
Employers suggested they would respond to a requirement of a three per cent minimum contribution by absorbing additional costs through profits; passing costs on through increased prices; or by passing the costs through to wages.
Businesses also support the idea of a portable pension account where employees would take the plan with them when they moved jobs.
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