A Pensions Bill amendment designed to reduce pension pressure on employees could actually increase the administrative burden on small firms, warns the Association of British Insurers.

The amendment announced by the government allows employers to self certify their company pension scheme if it meets the quality standard based on pension contributions over a 12-month period.

The quality standard for a money purchase scheme is defined as workers receiving 8% of their earnings, of which 3% have to be contributed by their employer.

"The current drafting of the amendment adds to the administrative burden for employers and risks discouraging them from continuing to provide pensions to their employees that have higher contributions than the level set for personal accounts," said ABI director Maggie Craig.