FROM April new regulations are to be introduced which will mean that staff will have greater control over how their workplace pension schemes are run. Employers will be required to consult all members of their pension scheme before making major changes t
FROM April new regulations are to be introduced which will mean that staff will have greater control over how their workplace pension schemes are run.
Employers will be required to consult all members of their pension scheme before making major changes to terms and conditions.
Consultations will be necessary if firms want to close the scheme to new members, or move from a final salary to money purchase pension arrangement.
The new regulations follow a recent spate of firms cutting pension benefits in order to save money and should give workers more of a voice about any major changes to their pension scheme.
In future, employers will have to consult workers or their representatives for at least 60 days before introducing changes.
"These regulations will mean that employees will now have a voice about any major changes to their pension scheme," said Stephen Timms, Pensions Minister.
"Members need to fully understand their pension scheme and the effect that changes will have on it and their future pensions," he added.
The regulations will be phased in over the next two years.
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