The majority of larger employers (93%) do not yet have firm plans in place to meet auto-enrolment regulatory requirements, according to research[1] from Standard Life[2].
Of the 200 larger employers surveyed, just 7% had reached a decision on how they will deal with auto-enrolment. 39% had set a date by which a decision will be made, however, over half of those surveyed (54%) did not know when they would have their plans in place.
Over half (56%) were undecided about the contribution levels they would be making for new members being auto-enrolled. Around a third (36%) of employers confirmed they would pay the same levels and just 5% indicated they would reduce payment for new members.
Jamie Jenkins, Head of Corporate Strategy & Proposition, Standard Life commented: "The research highlights that many employers still have some big decisions to make. The majority of those surveyed will need to commence auto-enrolment at some point during 2013 and there is a great deal of planning work that needs to be undertaken. Therefore 2012 is going to be a busy year.
"Employers will be looking towards advisers to support them through the challenges and they'll also be looking to providers to deliver solutions that allow them to implement these changes as painlessly as possible."
Interestingly, half (50%) of the employers who responded were not clear as to the salary ranges of the employees who were currently not in their pension scheme.
Jenkins added: "Spending time now understanding the financial impact of auto-enrolment will help employers identify the difficult decisions that need to be made. The sooner employers start the planning process, the easier the financial and administrative transition will be."
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