Mids companies will struggle with pension changes, says PwC
Many Midlands companies are struggling to over the complexities surrounding next year's pension reforms, according to accountancy firm PwC.
Tomorrow (1 October) marks one year until employees must start being automatically signed up to workplace pensions.
Pensions experts at PwC said that employers face "an enormous administrative and cost burden" getting everything in place on time.
This is in addition to the costs of the actual pension contributions of 3 per cent of earnings that they will need to start making for all workers.
Richard Giles, pensions specialist at PwC, said: "Auto-enrolment is an important step in tackling the pensions crisis, but the pressure it will place on businesses in the region cannot be underestimated.
"The amount of preparation needed over the next 12 months will put tremendous strain on HR and finance functions at a time when many are already struggling with cost reduction programmes.
"Providers are telling us that their systems won’t be ready to go live until spring or summer, and this leaves little time for essential configuration by individual employers and it is important that they plan ahead now."
