You may have seen the adverts on television with some familiar faces telling us that auto-enrolment of pensions is coming, and “We Are All In”… seen them?
Well here are the facts behind it and how it affects you….
The Pensions Act 2008 requires employers to automatically enrol eligible workers into a qualifying workplace pension scheme and pay contributions on their behalf.
It needs to meet certain legal criteria and will apply to some or all of their staff, what’s more if companies do not comply they are eligible for some huge fines, and we are talking up into the thousands, so it is crucial that you start doing your homework and getting on board now!
We have previously posted the staging dates that companies need to comply by, but here they are again, so check below to see when you need to be ready…
- For Employers with 250 or more staff it came into effect from October 2012 and is on-going to February 2014
- Employers with 50 to 249 staff it comes into effect between 1 April 2014 and
1 April 2015
- Employers with less than 50 staff it comes into effect between 1 June 2015 and 1
- New employers setting up businesses from 1 April 2012 up to and
including 30 September 2017, it comes into effect between 1 May 2017 and
1 February 2018So by February 2018 auto-enrolment is required by ALL employers. Find your effective date at www.tpr.gov.uk (The Pensions Regulator)
So what now?
Well, for some of you April 2017 may seem a long time off, but it will come quicker than you think, so get preparing now. Do you already have a company pension scheme in place? Great! But check, remember it needs to be compliant and this is all to do with the minimum contributions made or minimum rate at which benefits build up, your pension provider can check this for you. If you don’t have anything at all, remember that to get one in place can take up to 18 month so that’s already December 2014!!
Don’t get caught out, plan ahead. Some time invested now researching and getting your workplace pension in place could save you up to £10,000 later if you don’t. That’s a big risk are you prepared to take it!
Get in touch now if you need any help or advice by calling 0203 538 5311 or fill in the form below.