If you have at least one UK worker then you need to be ready for the new Automatic Enrolment Pensions Law which is being introduced in stages over the next four years.
Your business will be allocated a ‘staging date’ and from this period onwards, you are required by law to automatically enrol all eligible workers into a workplace pension and make contributions on their behalf. You will also need to register with The Pensions Regulator as well as provide your workers with information regarding the changes and how they will be affected. If you already offer a pension scheme, then you are obligated to ensure that it is fully compliant with the changes.
Automatic enrolment doesn’t have to be complicated or time consuming for your business. JSO have teamed up with an IFA so that we can best advise our clients at the appropriate time – not only will we be providing you with your staging date, but we’ll also deal with all of the extra data processing that is required.
In the meantime, we’ve put together some key information on automatic enrolment in our two part blog. Keep reading for Part I and check back next week for Part II.
Automatic enrolment commenced in Oct 2012 and its introduction will continue over the next four years. The size of your business determines when your staging date will be. You can bring forward your staging date but you can’t delay it.
If you have at least one worker aged between 22 and the State Pension age with at least £9440 per annum in qualifying earnings and works in the UK, you are obligated to comply with these changes. You will need to formally assess every one of your employees to determine whether they are ‘eligible jobholders’.
Choosing a Pension Scheme
Employers will need to select a pension scheme for their eligible jobholders and this could be an existing scheme already utilised by your business or a completely new scheme. It’s important to remember however that the scheme you choose must meet the strict criteria of the changes such as no barriers on age limits or probationary periods and no need for staff to provide extra information about themselves or opt in individually. One option is the National Employment Savings Trust (NEST) which was recently established by the Government to assist employers, including those with low to medium earners, to comply with the new automatic enrolment legislation. NEST is required to accept all employers who apply.
Next week, we’ll be providing information on
- Registering with the Regulator
- How to Make Contributions
- Record Keeping
- Communicating the Changes to Staff
In the meantime, if you would like to discuss how the changes are going to affect your business, call us now. Remember, we will take all the time and effort OUT of automatic enrolment. If you want to stay focused on the important parts of your business, telephone us now on 01892 770612.