Anti-ageist pension reforms are delayed

The government has delayed the introduction of pension provisions in the new Employment Equality (Age) Regulations 2006.

While the other aspects of the regulations come into effect this month (see feature in this issue), those concerning employer contributions to occupational and personal pension schemes will not do so until 1 December.

The move follows protests by employers that they need more time to adapt their schemes to the new law. Many schemes offer older staff enhanced contributions to reward long service, but such practices could be illegal under the legislation.

James Purnell, minister for pensions reform, said the government is "committed to making sure any new regulations contribute towards the overall goal of encouraging more people to provide for their future".

But the Employers Forum on Age (EFA) said it had warned three years ago that the regulations would put pensions at risk, and criticised the government for waiting so long before it "finally listened to the concerns of employers".

Government guidance, The impact of Age Regulations on pension schemes, can be downloaded from www.dti.gov.uk/files/file28230.pdf