18 January 2006
A key role for communicators in pensions changes
The internal communication industry looks set to become more involved in company pensions communications when government regulations come into force this April.
The Occupational and Personal Pension Schemes Regulations 2006 mean that employees will have a voice on major changes to their pension scheme, according to Pensions Minister Stephen Timms. From April 6, companies will be required to consult employees on any significant pension scheme changes.
Many employees first heard about plans to close the company pension scheme on radio and television reports.
It should put an end to the media frenzy concerning company pension schemes, which highlighted the failure of companies to consult and communicate with employees on something that affected many of them greatly. Well-known household names such as Scottish Power, Arcadia, Provident Financial and Rentokil were caught out when they opted to save money by either changing or closing existing pensions schemes, angering staff and unions alike.
But it was the Co-operative Group that caused the greatest furore when it failed to convey its intentions to staff before telling the media. Instead, many employees first heard about plans to close the company pension scheme when they woke up to media reports on radio and television.
Increased emphasis on internal communication
The
new regulations should lead to companies putting a greater emphasis
on internal communication as happened when the Information & Consultation
of Employees Regulations (ICE) became mandatory last year. Many companies
took a good look at their internal communication functions and also
appointed employee representatives when the ICE regulations obliged them
to inform
and consult with staff on key business issues. The Department for
Work and Pensions (DWP) clearly expects a similar level of commitment
when
it states that pension consultation may be done through existing
employee representatives in its regulation guidelines.
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