Many people don’t save enough for retirement, or take advantage of company pension schemes. The new “auto-enrolment” legislation aims to tackle this by imposing new duties on employers to place eligible employees into a pension.
All employers were issued a ‘staging date’ between 2012 and 2018 following which they must comply with the new legislation.
If you are an employer, you will need to understand your duties, the impact on your business and the changes you will need to make.
The new employer duties are not optional and affect every employer in the UK. Not only must you have a suitable qualifying workplace pension scheme in place, there will be some employees who meet certain age and income requirements who must be auto-enrolled into the pension scheme. The employees that must be auto-enrolled into your new pension scheme will:
- Be aged between 22 and State Pension age.
- Earn over £10,000 a year.
- Work in the UK.
There are also employees who may not be eligible to be auto-enrolled, but who you’ll still need to make minimum pensions contributions for should they decide to join your pension scheme.
As an employer you will have received notice of your staging date and you must have a workplace pension scheme in place by that date that meets the auto-enrolment criteria and have enrolled eligible employees or face significant fines.
As you look to put in place a scheme, we can help you answer the key questions, including:
- Which pension provider shall I use?
- Who are my eligible job holders?
- How will this integrate with payroll?
- How much will pension contributions cost?
- What definition of earnings should I adopt?
- Should I use postponement?
The new duties are complex so we have established a cost effective auto-enrolment service, designed to let business owners and managers concentrate on running their business.
Having established over 100 auto-enrolment schemes, we have the expertise to put in place a pension scheme that integrates seamlessly into your business and allows you to satisfy your employer duties now and in the future.
Contact us for more information and to get a fixed fee quote.
The Financial Conduct Authority does not regulate Auto-Enrolment.