Consultation! Consultation!


The obligation on employers to consult employees regarding major pension scheme changes from 6 April 2006 is the focus of the latest consultation to emerge from the DWP. The driver behind the requirements to consult is the EC Directive on Information and Consulting Employees. This Directive was implemented in the UK in terms of employment rights from 6 April 2005, but the pensions aspects were left to the Pensions Act 2004 (PA 2004). Sections 259 – 261 of PA 2004 set out a framework for requiring employers to consult about certain “prescribed decisions” relating to future benefit provision. Two sets of draft Regulations have now been published for consultation which help to flesh out the changes which are likely to be affected.

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