A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:
• are aged between 22 and State Pension age
• earn more than £10,000 a year
• work in the UK
This is called ‘automatic enrolment’.
However, even if you have a current pension scheme it will not comply with the new rules. Of course you could have a go at setting up the process yourself see www.thepensionsregulator.gov.uk for what you need to do by when and check out information to pass to your employees www.gov.uk/workplacepensions
BUT be warned….This is a daunting and potentially onerous process which could lead to fines of up to £10,000 per day if a business is found to be non-compliant.
Deadlines for staging are just around the corner with well over a million businesses with a staging date between 2016 and 2018, according to the Federation of Small Business.
Setting up a scheme takes time and involves a lot of paperwork. If staff don’t opt out, you need to make contributions into the scheme for them. You need to advise all staff of their rights.
It doesn’t end there either. You need to have a process in place to ensure that as employees become eligible for the scheme, they are auto enrolled as required. You need to keep records and report it all to the Pensions Regulator.
Remember this is the law and it isn’t going away.
However, if you want our experts to replace the pain with peace of mind, call Karen Robinson 0161 975 6700 for a no obligation discussion.