Auto Enrolment Pensions

Auto Enrolment Pensions

auto-enrolment pensions

Auto enrolment legislation has been introduced as a way to encourage more workers to save for their retirement; the government want to create a ‘retirement savings culture’ in the UK. The concept of auto enrolment sounds simple – any 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

and that the pension scheme itself must meet certain minimum standards. Depending on the worker’s age and their level of salary, employers may also be required to make contributions. It sounds simple enough but the implementation of it is not as straightforward as it sounds.

The first step is to know your staging date or the date by which you will have to comply with the new legislation, as it is being phased in over five and a half years and depends on the number of employees in your organisation. You can find out when your particular staging date is by using the following link and simply entering your PAYE reference:
http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

You may already run a workplace pension scheme for your employees, in this case you should check with your pension provider to see whether it is appropriate for auto enrolment. Many existing schemes will continue with little or no change but if the scheme is not deemed suitable for auto enrolment then you may need to select an alternative one.

Further details about auto enrolment pension schemes can be found in our blog and remember that whatever stage you are at in the auto enrolment process, we are here to help. Just please remember that the sooner you get started in the process, the better for your business.

For further information on how Balmer Accountancy can assist you with auto enrolment please contact us by phone on 01280 818776 or by email at info@balmeraccountancy.co.uk.

 

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