Pensions Auto-Enrolment: is your business ready?
From October last year, changing pension legislation meant that all employers need to turn their attentions to the concept of auto-enrolment. With the majority of businesses starting this process now (with some start dates running through to October 2018), we've summarised the key facts that you need to know.
- With this change all employers will need to automatically enrol eligible jobholders into a pension scheme. They'll have to make both employer and employee contributions.
- They will have to register all of this with The Pensions Regulator and maintain their reporting requirements, as well as communicate all of this to staff.
- 'Eligible jobholders' means anyone who works under a contract of employment or performs services personally for another party to the contract. This doesn't include the self-employed or directors of companies where there is no contract of employment.
- As a general rule those earning over £8,105 per year must be automatically enrolled. Those earning between £5,564 and £8,105 have the right to opt in (with the employer contributing) and those earning less than this amount may choose to join the scheme (without the employer contributing).
- Again, as a general rule, employers need to start this process within one month of the jobholder starting the job, or qualifying for entitlement/right to join.
- Employers need to register with The Pension Regulator that they have an automatic enrolment scheme in place within four months of their 'staging date' (the date they've been told, between October 2012-2018, that they need to start from) and then re-register every three years.
- The minimum contribution levels will be phased in between your staging date and October 2018. The two options on which to base your contributions levels can be seen by clicking here.
- You can find out more information about this by looking at: