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The company I work for has decided to implement the new UK pension scheme early, 18 months earlier than required, why would a company do this?

I don't believe it is out of plain old fashioned goodness, what would be in it for them to implement this early?

closed as off-topic by IDrinkandIKnowThings, Myles, JB King, NotMe, mcknz Dec 4 '15 at 1:00

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    I'm voting to close this question as off-topic because not about navigating the workplace, but rather about understanding business decisions which is not on topic. – IDrinkandIKnowThings Dec 3 '15 at 22:27
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Having a company pension scheme can be a useful tool for recruiting, rewarding and retaining employees.

Organisations seldom, if ever, do things out of the goodness of their heart. If corporate bodies are psychoanalysed (as if they actually were the natural persons the law says they are equivalent to), it turns out that they are psychopaths. And any heart would be a legal fiction.

Reasons why they might implement under the new pensions regime now are:

1) "we have to do this anyway, so let's do it now".

2) "we were planning to put a pension scheme in place in any event." If you were doing that now, it would be best to make it comply with any known upcoming changes in legislation and regulation.

  • If this is a public company, I can almost say with 99% accuracy that this answer is wrong. – blankip Dec 4 '15 at 10:26
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Most likely tax or legal. It can be categorized as X today. The new pension plan may have stricter rules in the future and may have a grandfather clause. The new pension plan is beneficial to the company compared to the current. The people to implement are not busy right now.

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