No matter what the size of your business, be it 1 or 1000+ employees, as a UK employer you are legally required to automatically enrol staff into a pension scheme, assuming they meet certain criteria.
Automatic enrolment applies to all workers between the ages of 22 and state pension age if they earn over £833 per month. Workers that fall outside of this bracket have the right to opt in to the scheme.
Automatic enrolment is being implemented in stages: it started with larger employers in 2012 and is being rolled out to all employers by 2018, so even if you’re not part of it already, it’s essential you start preparing.
- Establish your staging date
- Nominate a point of contact
- Choose a pension scheme, or check that your current scheme complies with the regulations
- Assess your staff for eligibility for automatic enrolment or those who can opt in
- Establish costs (for registration and contributions)
- Enrol your staff
- Communicate to staff
If you fail to comply, the Pensions Regulator has a number of civil and criminal enforcement measures at its disposal ranging from a friendly warning, through to civil action in the court.
Our Park City Consultants can help set you on the right path. We can review your current benefits package, update your company policy in your staff handbook and update your employees’ contracts.
Comprehensive information about automatic enrolment and the steps you need to take to be ready can be found on the Regulator’s website (www.tpr.gov.uk)
For expert advice, contact one of our Park City HR Consultants.