Time to Act!

Workplace Pensions Automatic Enrolment

A change in pension legislation means that every employer in the UK must now help their employees to save for their retirement. Known as ‘Automatic Enrolment’, the introduction of that legislation means that action is required by all employers to ensure they have a workplace pension scheme in place and that their scheme meets strict rules and standards.

Now is the time to act why not come along on Thursday 22^nd to find out how you can comply?

2015 is the year when all companies with less than 50 employees need to be ready for auto enrolment (known as the ‘staging’ date). Whilst your staging date is the latest date you must have a compliant scheme in place, the advice to businesses is to start preparing as soon as practical for your company, with The Pensions Regulator recommending 12-18 months before your staging date.

The goal for the minimum rate of pension contribution is a total rate of 8% of a specified band of earnings, of which a minimum of 3% must come from the employer. There are however three alternative contribution calculations that may be selected if they are more appropriate for the employer, preparing for the additional cost will be essential.

There are also a range of administrative tasks you have to comply with. 

• Categorise your workers. You may think everyone should be included in auto enrolment, but it’s not that simple.
• Communications. There are a number of different communications you need to send to different categories of worker at different points in time.
• Keep detailed records of opt-ins and opt-outs. Employees can opt out, employees who aren’t eligible now may become eligible, opted out employees may change their mind.
• Choose a Qualifying workplace pension scheme. You’re also expected to select a pension plan and take decisions about which investment choices to offer your employees
• Register your scheme with the pensions regulator. Automatic enrolment is now a legal part of employment within the UK.

If you don’t comply with the new regulations, you can be fined up to £500 each day. If you already have a pension scheme in place you may believe that it will take care of the extra administration for you, but it won’t.  

To find out more book your place on the seminar or download the guide 

If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk