According to a Prudential survey, more than one in five businesses still have not informed their employees about changes to their pension schemes following Pension Simplification Laws that started on 6 April 2006. More than one in ten businesses questioned said that they had told their employees about the changes, while 14% said that they were planning to tell their workers about the changes and 8% said that they had no plans to communicate the changes to their pension schemes. While the majority of employers were positive about the quality of their communication with staff, 18% of senior managers described theirs as average or poor.
Our view:
Many company pension schemes have a couple of years before they are required to comply with the new pension laws. Of course, employee members will be informed when the time is right.