Firms 'will need support' as pensions reforms take effect
Big businesses as well as small companies across Britain will need effective financial support from government in years to come to ensure that they can provide employees with proper retirement security when pension reforms begin to take effect, it has been claimed.
The National Association of Pension Funds (NAPF) is convinced that when auto-enrolment into Personal Accounts is introduced during 2012, the UK's large firms will incur costs running into billions of pounds.
In response to a call for financial assistance for pensions schemes run by smaller businesses from the Engineering Employers Federation, the NAPF has highlighted the help larger operations may need in future to provide their millions of employees with a sound financial future.
"We should not forget that it's not only small companies contributing to pensions for the first time that will need help," said Joanne Segars, the NAPF's chief executive.
"Employers with existing schemes will face additional costs - of around £2 billion - when auto-enrolment is introduced."
The EEF works on behalf of manufacturing, engineering and technology-based businesses in the UK and its members collectively employ close to one million people nationwide.
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