It was revealed yesterday that the 2008 Pensions Act would be amended to prevent employers using a loophole to postpone auto-enrolment.

Last month,  LCP warned that a loophole giving companies the ability to defer auto-enrolment for existing staff until 2017 for defined benefit (DB) schemes would allow around 3,000 private sector employers due to auto-enrol over 4 million workers next year to push back enrolments until 2017 without any backdated compensation.

In a statement yesterday, Pensions minister Steve Webb said the government would introduce legislation as soon as possible to ‘clarify the law and to provide certainty by preventing the avoidance of the automatic enrolment duty through the exploitation of an easement aimed only at employers who provide defined benefits under hybrid schemes or defined benefit schemes’.

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