Workplace Pensions laws in the UK are changing and all UK employers will be required to take action to comply with the changes. The change in the law means that employers who have one or more workers will need to automatically enrol certain staff members into a suitable workplace pension scheme. Employers will be required to deduct an employee contribution from salary as well as to make an employer contribution to the scheme.
This law comes into effect for UK businesses between Oct 2012 and April 2017, with exact “auto-enrolment staging dates” for each employer determined by size of the company. For the largest employers, this process began on 1st October 2012.
As a guide companies with 500-800 staff members will have a staging date of 1st November 2013, a company with 160 staff will stage on 1st April 2014. It is expected that all businesses will have staged by 1st April 2017.
The Pensions Regulator advises all employers to complete 7 steps in preparation for automatic enrolment:
- Know your staging date – first you need to know when you will have to act – see pension auto enrolment staging dates
- Assess your workforce and findout who do you auto-enrol
- Review your pension arrangements, including options for employers with a pension scheme
- Communicate the changes to all your workers
- Automatically enrol your “eligible jobholders”
- Register with the Pensions Regulator and keep records
- Contribute to your workers pensions
We can help companies of all sizes with auto-enrolment preparation at every stage. Contact us now to have your questions answered and find out how we can help you with the new automatic enrolment regulation.
The value of the investment can go down as well as up and you may not get back as much as you put in.