New pensions for temps
New pensions for temps - REC takes forward industry concerns
Over the past few weeks, the Recruitment and Employment Confederation (REC) has held a series of meetings with business groups and the Department of Work and Pensions to explore the implications of extending personal accounts for pensions to the temporary work force.
Commenting on the meetings, Anne Fairweather, Head of Public Policy said: "From October 2012, recruitment agencies will start to have to auto-enrol temporary agency workers into a pension scheme. The worker will then have the right to opt out from the scheme.
With recruiters engaging new workers in their thousands everyday, there is a danger that this new requirement will become an administrative nightmare. We are working with the DWP and the Personal Accounts Delivery Authority to insure that the new pension schemes can respond to the dynamic nature of temporary staffing."
The proposals will require workers to contribute 4% of their earnings to a pension pot with employers contributing 3%. The aim of the scheme is to encourage pensions savings among lower paid staff who currently do not save enough for their retirement.
Anne Fairweather continued: "It is right to encourage more responsible saving for retirement. However auto-enrolment does not sit happily with temporary work, where workers may only work one shift for an agency. It is paramount that the eventual scheme is easy for our recruitment agency members to operate. REC is working hard to insure that this is the case."