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REC pensions lobby steps up a gear

REC pensions lobby steps up a gear 
 
The Recruitment and Employment Confederation has launched a survey of its membership to address possible challenges due to new rules which from 2012 will require recruiters to automatically enrol agency workers on to a pension scheme. 
 
Designed to encourage more workers to save for the future, the scheme has been broadly welcomed by the business community and political parties.  However the regulations being brought under the 2008 Pensions Act may cause difficulties within the temporary staffing sector.
 
Commenting on this possible outcome,  Tom Hadley, the RECs Director of External Relations said: Although 2012 may seem a long way off, pensions providers are designing their systems now to deal with the one million affected employers.
 
Once on the scheme, agency workers can choose to opt out and we anticipate that many will do so. Many workers will want to maximise their take-home pay when in temporary work so the system must be able to cope with the high numbers wanting to opt out.
 
Hadley continued: The other consideration is that administrative costs involved in refunding workers the money paid into the pension scheme could be high possible even more than the actual contributions. We are talking to both the Department for Work and Pensions as well as the Personal Accounts Delivery Authority  and the Pensions Regulator  the Governments own pension provider to find a system that works for the recruitment industry. So the responses from the survey will be vital in this work.
To take part in the survey, visit the website link,  www.rec.uk.com/survey-pensions

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