The Pensions Act 2008 received Royal Assent on 26th November 2008.

In most respects the Act will come into force on 1st October 2012 "in accordance with provision made by order by the Secretary of State" (s.149).

Under section 3 of the Act all employees aged between 22 and State Pension age, earning more than £5,035 a year (in 2006/07 earnings terms) who are not in a qualifying pension scheme will be enrolled into an "automatic enrolment scheme". Employees will contribute 4% and employers 3% of pay. The scheme is to be called the National Employment Savings Trust or "NEST".

NEST is due to start on 1st October 2012, but may be subject to modification before then - in June 2010 the Coalition Government announced that it intends to go ahead with plans for auto-enrolment but considers it is appropriate to review the position generally in the light of developments since 2005 when the plan was first seriously considered.

Where workers remain in a money purchase scheme, employers would contribute a minimum of three per cent of qualifying earnings, with total contributions of eight per cent made up through member contributions including Government tax relief.

There is general information on a DWP website re pensions reform.

See also notes at Small Employers/stakeholder pensions .