As part of an ongoing campaign focused on addressing the risks facing defined contribution scheme members, the Pensions Regulator and the FSA have jointly published a new information leaflet for employers – ‘Guide for employers: talking to your employees about pensions’.
The leaflet sets out questions that employers may be asked by their employees about pensions and suggests answers and other sources of information that employees can refer to. It will be relevant to employers with DB, DC and contract-based schemes.
The leaflet does not increase the responsibilities on employers but encourages them to look at the activities they can do voluntarily, at little or no cost, to help their employees to get greater value from the scheme.
The Pensions Regulator and FSA have come together to publish this information with a shared belief that more engaged and confident employers can better support employees in planning for their retirement.
DC becomes a more prominent part of the pensions landscape; more members will bear a greater direct responsibility for the outcome of their savings, says David Norgrove, pensions regulator chair. We expect that employees will approach their employers for information and support – as we know employees consider their employers to be a trustworthy source of information about pensions. Our aim is to help employers build confidence in talking about pensions – without worrying about breaching rules on financial advice.
We hope that this will encourage all employers to talk more openly and comfortably about pensions – as part of the preparations for 2012 when they will have a legal duty to enrol their employees into a qualifying pension scheme and will need to be much more engaged with the pensions they provide.”
D.C.