More charities get ready for pension reform, Acevo report shows

By John Plummer, Third Sector Online, 25 January 2012

Nick Carey

Nick Carey

Policy officer Nick Carey says those that do not have a strategy should start planning one

More charities are preparing for upcoming pension reform that will require employers to enrol staff on their pension schemes automatically, according to a survey of Acevo members.

Employee Benefits Survey 2011/12 says 31 per cent of organisations need to consider their strategies in relation to the reform.

This is down from 47 per cent in 2010/11 and 51 per cent the previous year.

The survey, which the chief executives body conducted with the employee benefits specialist Foster Denovo, is based on 232 responses to questionnaires sent to Acevo members in October.

Staff currently have to apply to join employers’ pensions schemes, and many fail to do so.

Auto-enrolment will commence for the largest organisations this year. But the government announced in November last year that it planned to defer auto-enrolment for employers with 50 staff or fewer from April 2014 to May 2015.

Nick Carey, policy officer at Acevo, said in a statement: "Clearly the pressure has eased off for a number of charities.

"However, while this may bring a sigh of relief from some employers, third sector organisations should not use this as an opportunity to rest on their laurels.

"Instead, this time provides them with the opportunity to plan effectively, in particular the 31 per cent that are yet to adopt a strategy."

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