The Pensions Regulator given key reform role

The Pensions Regulator will monitor a new system of pension saving from 2012, Minister for Pensions Reform Mike O'Brien announced today.

People earning more than £5,000 a year will be automatically enrolled into a qualifying work-based pension scheme or personal accounts, subject to Parliamentary approval of reforms to be published in the forthcoming Pensions Bill.

As the regulator for all work-based pension schemes, the Pensions Regulator will monitor personal accounts as a whole, as well as ensuring employers meet their obligation to automatically enrol staff into a good workplace pension scheme.

Mike O'Brien said: "I believe the Pensions Regulator is well-placed to perform this important new role. It currently does an excellent job protecting pension scheme members while also demonstrating sensitivity towards the needs of businesses.

"I am confident the Pensions Regulator can continue to perform this excellent service and handle the new personal accounts scheme with no detrimental effect to its existing role.

"Working with the Pensions Regulator we will put in place a simple, proportionate compliance regime which ensures employers meet their obligations without imposing any unnecessary burdens."

The Pensions Regulator will use a proportionate approach, focused on enabling employers to meet the requirements of the proposed legislation - which include the employer automatically enrolling staff into a qualifying scheme, and providing a minimum 3 per cent employer contribution.

The Pensions Regulator chairman David Norgrove said: "We welcome the confidence in us shown by choosing us to undertake this task, which will be central to the success of personal accounts."

While the Pensions Regulator will be responsible for ensuring employer compliance with the new requirements, HM Revenue and Customs will have an important role in providing them with the information needed to identify employers, forming the basis for employer registration to be undertaken by the Pensions Regulator.