§ Mr. TynanTo ask the Secretary of State for Work and Pensions what research his Department has(a) carried out and (b) commissioned into the benefits of (i) compulsory and (ii) opt-out pension scheme membership for employees. [161206]
§ Malcolm WicksWe have established the independent Pensions Commission to monitor and keep under review the voluntary system of private pensions and long term savings. Its interim report, which will describe in detail the present situation, current trends, and the challenges to be met, will be published in September. Their first full report, expected in mid 2005, will include recommendations as to whether there is a case to move beyond the current voluntary system.
International research suggests that automatic enrolment, where new employees automatically become members of their employer's pension scheme unless they choose to opt-out, is a very effective tool for increasing pension scheme membership for employees. Over the next year we aim to research the effectiveness of this approach in delivering increased pension savings in the UK.