Complex auto-enrolment guide bewilders UK firms

The length and complexity of the 122-page auto-enrolment guide recently launched by the Pensions Regulator has shocked board members across the UK.

Speaking on behalf of the Institute of Directors (IoD), of which he is a member, Malcolm Small, policy director at Tisa, said: “When you present such a lengthy guide on auto-enrolment to non-pension business people, their eyes start rolling in their heads because it’s too complex.

“When I tried to take members of the board through the literature, their reactions were very negative. They’d prefer compulsion because it’d be easier it bring in.”

But Jim Bligh, principal policy adviser at the Confederation of British Industry, highlighted the benefits of the flexibility of auto-enrolment for employers.

“Employers will design benefits packages that work for them and suit the needs of their employees, who should be able to decide for themselves how they allocate their money,” he said.

“If they choose to save in pensions, then that’s great news, but if they choose to use their money in other ways, it is up to them – and the current auto-enrolment framework allows for this kind of flexibility.”

A survey of the IoD’s 45,000 members shows a direct positive correlation between company size and a propensity to engage with auto-enrolment. A full report of the findings is expected to be released by the IoD tomorrow.