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The Pensions Act 2008 (Commencement No. 13) Order 2012

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EXPLANATORY NOTE

(This note is not part of the Order)

This Order brings into force certain provisions of the Pensions Act 2008 (c. 30) (“the Act”) as amended by the Pensions Act 2011 (c. 19).

Article 2 of, and the Schedules to, the Order bring into force the provisions of the Act necessary to give effect to the introduction of the automatic enrolment duties set out in the Act. The provisions come into force, in so far as they are not already in force, on 30th June 2012.

The requirement in Chapter 1 of Part 1 of the Act (sections 1 – 33) to enrol certain workers (referred to in the legislation as “jobholders”) into a pension scheme which meets the minimum standards specified in the Act will apply to employers in stages, starting with the largest employers first, from 1st October 2012 onwards.

However, from 1st July 2012, the largest employers will be able to enrol their workers into a pension scheme early, in line with the duties set out in the Act, when the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 (S.I. 2010/772) come into force.

Chapter 2 of Part 1 of the Act (sections 34 – 49) sets out the regime for ensuring compliance with the automatic enrolment duties.

Chapter 3 of Part 1 of the Act (sections 50 – 59) sets out safeguards during the recruitment process and during employment to ensure that an employee’s rights to become and remain a member of a qualifying pension scheme are protected.

Section 61 sets out requirements in relation to record keeping and compliance.

Section 66 gives the Pensions Ombudsman the additional function of investigating complaints relating to a jobholder opting out of pension scheme membership.

Chapter 8 of Part 1 of the Act (sections 88 – 98) sets out how the automatic enrolment duties apply to particular classes of worker such as the police and persons working on vessels, and defines the terms “employer”, “worker” and related expressions for the purposes of the Act.

Section 127 requires the Secretary of State to review the operation of the material detriment test in sections 38A and 38B of the Pensions Act 2004 (c. 35) and to publish the results of that review within a specified time.

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