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Pensions Act 2011

Pensions Act 2011

2011 CHAPTER 19

Commentary on Sections

Part 2: Automatic enrolment

Section 14: Transitional period for defined benefits and hybrid schemes to be optional

99.Section 14 amends section 30 of the PA 2008. Section 30 of the PA 2008 allows employers using defined benefits and hybrid schemes to adjust gradually to the additional costs of the automatic enrolment reforms. Currently, section 30 provides that for certain jobholders, where the conditions in section 30(2) are met, the automatic enrolment date under section 3 of the PA 2008 is automatically deferred until the end of a transitional period as set out in regulations. This section amends section 30, so that employers can choose whether or not to defer automatic enrolment until the end of that transitional period.

100.Subsection (2) amends subsection (3) of section 30 to provide that deferral of the automatic enrolment date will only apply where an employer serves a notice on the jobholder, within a period set out in regulations, stating that the employer intends to defer.

101.Subsection (3) amends subsection (4) of section 30 (provision where certain conditions in section 30(2) cease to be satisfied during the transitional period) to take account of the fact that the employer has to give a notice in order to defer the automatic enrolment date.

102.Subsection (4) inserts a new subsection (7A) into section 30, allowing the Secretary of State to make regulations regarding the form and content of that notice.

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