§ Mr. SawfordTo ask the Secretary of State for Social Security what steps he is taking to increase the take-up of occupational pensions. [79743]
§ Mr. TimmsThe latest National Association of Pension Funds Survey shows proportion of eligible employees joining occupational pensions schemes. For final salary schemes the figure has increased from 62 per cent. in 1997 to 86 per cent. in 1998. For Money purchase schemes the comparable figures are 68 per cent. and 75 per cent. In schemes where employers operate automatic entry the figures are over 90 per cent.
We want to do more to encourage people to join occupational pension schemes. In the Green Paper "A new contract for welfare: Partnership in Pensions", we have sought views on how to do this and on whether we should allow employers to require employees to be members of their occupational pension scheme, subject to the right for employees to opt out.
We are currently considering the responses we have received and will be formulating proposals to take action to improve take-up.