What is it?
The government has introduced legislation with the aim of making people save more for their retirement through an automatic enrolment scheme their work place will provide. It requires all UK employers to auto-enrol eligible workers into an employer pension scheme whereby they must also contribute. Failure to comply with this new legislation will incur fines and penalties for the company. The workplace pensions came into force back in 2012 for larger corporations and from 2015 onwards for smaller businesses.
Who does it apply to?
Your workforce will fall into one of three categories;
- Eligible job holders
- None-eligible job holders
- Entitled workers
It is important to pre access your employees and understand the category into which they fit. The main criteria for eligibility are;
- They are aged between 22 and State Pension age
- They earn more than £10,000 a year
- They work in the UK
When is it?
It is essential that you understand when you need to implement the pension scheme in your business. You’ll have what’s known as a ‘staging date’, this is issued to each and every individual company. Our advice is to start preparing for the automatic enrolment scheme 6-9 months ahead of your staging date.
If you don’t yet know when your staging date is, contact us today and we can find this out for you!
Once you have found out your staging date – You must inform the Pensions Regulator who will be responsible for managing your auto-enrolment process by nominating a contact, this is usually your accountancy firm. The nominated contact will then receive all updates, correspondence and the crucial information from the regulator in order to process this correctly.
For further information or to find out how we can help your business please call 01384 271 858 or get in touch via our contact form.