Everyone is Affected
A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:
Are aged between 22 and State Pension age
Earn more than 10,000 a year
Work in the UK
It is called automatic enrolment because it is automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme, but it is not automatic for you. You need to take steps to make sure your eligible staff are enrolled into a pension scheme. Even if you already pay contributions into a pension scheme for your staff, you still need to check if it is suitable for automatic enrolment.
The last tranche of smaller companies are now having to face up to meeting the requirements of auto enrolment: if you have less than 30 employees you will have a staging (or start) date between June 2015 to April 2018.
Even if you don’t think you will have to make any different pension provisions you still need to demonstrate to the Government that you have met all your duties by making an online declaration of compliance.
What do you need to do?
Provide a qualifying workplace pension scheme to meet new legislation and carry out your duties outlined by the Pensions Regulator
Choose a pension provider that delivers a compliant, quality, cost effective pension scheme that meets your needs
Assess the eligibility of your workforce, provide mandatory communications outlining what’s happening and sign-up eligible employees to the pension scheme
Each pay period manage your payroll to ensure employer contributions and employee contributions, if required, are made
Keep detailed records of employees, your communications to them and their choices
Who is eligible?
Not all your employees will be eligible to join your workplace pension scheme. It will depend on their age, how much they are paid and if they already have a pension that you contribute to.
If you don’t have any staff other than directors you may not have any auto enrolment duties – it will only apply if you have more than one director with an employment contract.