Clause 4
Pensions Bill
4:30 pm
Mike O'Brien (Minister of State (Pension Reform), Department for Work and Pensions; North Warwickshire, Labour)
I will not pre-judge whether the Tesco scheme will fit our criteria or not, I want to look at it in more detail. I have had discussions with Tesco, it runs a defined contribution scheme on which employees are auto-enrolled after a year. In those circumstances Tesco would not make back-dated contributions to the start, but from the point of enrolment. In terms of the people who would be automatically enrolled if we moved to three months, they would receive their employer’s contributions as from three months, not as from day one. There would be the option of a deferred period for automatic enrolment and contributions.