PARLIAMENTARY WRITTEN QUESTION
Workplace Pensions (11 March 2016)

Section 54 of the Pensions Act 2008 prohibits employers from taking any action for the sole or main purpose of inducing a worker to leave a workplace pension scheme.

The Government takes potential inducement by employers very seriously. The Pensions Regulator (TPR) is responsible for all matters relating to employers’ compliance with their enrolment duties, including investigations into individual cases of potential inducement by employers.

Through automatic enrolment we are delivering a fundamental shift in workplace pension saving that is changing the way that people are enabled to save for retirement. Already 100,668 employers have completed their declaration of compliance with the Regulator, resulting in more than 6 million eligible jobholders being automatically enrolled into a qualifying pension scheme.

The law relating to inducements is an important safeguard for workers and the Regulator has statutory powers of investigation and enforcement it can use in appropriate circumstances. We are working with the Regulator to monitor the number and nature of possible inducement cases as the roll-out of automatic enrolment continues. That will enable us to judge whether the current legislation covering inducement, and the guidance and messaging provided by the Regulator, are operating effectively to protect employees, and whether change may be appropriate.