The Pensions Regulator

Personal accounts

The personal accounts scheme

New government measures currently being considered by Parliament aimed at encouraging greater private saving include the introduction of the personal accounts scheme. 

Expected to commence in 2012, personal accounts will provide a simple, low-cost pensions savings vehicle, giving all employees the right to a workplace pension with a contribution from their employer.

Under the personal accounts regime, employers will have a duty to automatically enrol their eligible employees into a good quality workplace pension scheme (provided they are not already in such a scheme).

Employers will also have a duty to provide a minimum contribution.

The Personal Accounts Delivery Authority (PADA) is responsible for introducing the new personal accounts scheme. We'll be working closely with PADA, other providers of qualifying schemes and the Department for Work and Pensions in establishing and designing an appropriate regulatory structure.

You can read more about personal accounts in the Government's White Paper 'Personal accounts: a new way to save'.

The Pensions Regulator's role

The Pensions Bill 2007 sets out a new objective for us in relation to personal accounts – to maximise compliance of the employer duties. 

We'll take overall responsibility for regulating and overseeing the compliance regime, ensuring that employers meet their obligation to automatically enrol staff in the personal accounts scheme.

Our responsibility for the day-to-day running of the compliance regime will involve actively engaging with employers with a focus on education and enablement, and enforcement as a last resort.