Pension Auto Enrolment has commenced across the UK
If you're an employer, then your business may need to plan for some additional costs and administration.
That's because from October 2012 employer duties with respect to pension auto enrolement became a reality for large UK companies and will be a feature at all UK businesses over the next few years.
As an employer, you will have a duty to auto enrol all eligible jobholders into a qualifying workplace pension scheme and furthermore phase in minimum contributions of 3% or 4% of relevant earnings. There are four definitions of pensionable earnings to choose from, so the business first has to decide what its objectives are for auto enrolment. Some financial modelling may be required to help decide on the most appropriate contribution structure to adopt.
Employees will have to pay a minimum gross contribution of 4% 5% of relevant earnings, depending upon the contribution structure selected.
So as an employer, what sort of questions are you asking yourself?
The first is probably "how can I avoid this?" Unfortunately, it's mandatory for all UK companies and you'll have to register details of the scheme you have in place with the Pensions Regulator. Non complinant businesses can face fines of up to £10,000 per day.
This website has been designed to help employers comply with these changes.
However, the regulations are complex and you might need some addition help.
We can put you in touch with consultants who have already managed some auto enrolment projects and can bring their experience in helping you comply with the legislation.
The clock is ticking, are you ready for auto enrolment?