ACS Raises Concerns over Auto Enrolment Pension Costs

ACS (the Association of Convenience Stores) has responded to the Work and Pensions Select Committee into the auto enrolment pension scheme, raising concerns about the impact of the plans on the smallest businesses and their staff.

The auto-enrolment process will see most convenience stores begin to enroll their staff in June 2015. Under the new law all staff must be automatically enrolled in a pension when commencing employment. Under the scheme employers will be required to pay 1% (rising to 3% by 2018) of the employees annual salary into the pension scheme.

In its submission ACS sets out how many of the stores due to engage with the process will be significantly affected not just by the direct financial cost, but by the complications involved in managing the scheme for businesses without the specialist payroll and human resources support of large companies.

ACS Chief Executive James Lowman said: “Retailers are facing increased costs in many areas of their business, including above inflation increases in the minimum wage and changes to statutory sick pay regulations. Auto enrolment has the potential to be a significant operational and financial burden on small retailers, and we are keen to work with the Department of Work and Pensions to minimise the costs of implementation whilst ensuring that all retailers are aware of what is required of them.”

The full submission is available on the ACS website here: http://www.acs.org.uk/download/work-and-pensions-auto-enrolment/

This entry was posted by Victoria on Mon, 20/10/2014 - 11:26
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