Pension study launched by DWP

Tuesday, November 15, 2005

The Department for Work and Pensions (DWP) has introduced a new study into the pension system in the workplace to see if a pension stakeholder would consider increasing his or her contributions on an annual basis.

The DWP intends to begin the pension study on a small-scale with employers who are involved in their employees pension plans, such as those who contribute to or offer group stakeholder pension schemes.

"When we published 'Simplicity, security and choice: Informed choices for working and saving' last year, we said we would be working with our pension partners to establish ways of maximising the potential of workplace pensions," said Stephen Timms, minister for pensions reform.

"This research is important in order to find out what works, and it represents another step forward in our commitment to explore and test approaches in the UK which make the most of pension provision in the workplace."

The study will involve the increasing of monthly pension contributions on an annual basis by agreement with the pension stakeholder.

Legal and General, a company that offers a group stakeholder pension scheme, has worked alongside the government in devising the pension study.

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