The Government has introduced auto enrolment (Work Place Pensions) to help more people save for their future. This means that employers will have to automatically enrol some workers into a workplace pension plan and give other workers the option to join.
Auto enrolment and the employer duties will be a big challenge for employers and as an employer, you are likely to look for help if you dont understand the situation or necessary requirement you will have to under take.
Some basic facts:
When it’s happening
The employer duties started being introduced in stages from October 2012. Employers need to identify their ‘staging date’ to determine when their duties first apply. This also sets the date for automatic re-enrolment.
The effect on pension schemes
Most employers will have to set up and contribute to a pension scheme suitable for auto enrolment. Auto enrolment schemes must meet three sets of criteria.
The effect on the workforce
Employers must assess their workforce to determine which types of worker they employ. Workers can be categorised as eligible jobholders, non-eligible jobholders or entitled workers.
Employers will have different duties depending on the types of worker they employ. They’ll need to automatically enrol some workers into an auto enrolment scheme and arrange membership of a pension scheme
for others. They’re also responsible for the ongoing maintenance of the scheme and have an obligation to keep certain records.
The Pensions Regulator (TPR)
The employer duties are not optional. TPR will ensure that employers comply with their duties. Although TPR’s approach will be to educate and encourage compliance, employers will face substantial fines or even imprisonment if they don’t comply
If what you have read is already giving you a headache and you need advice, help and guidance in relation to Auto Enrolment & Work Place Pensions, please get in touch and I can arrange to discuss things with you further. Don’t leave it too late, it could be very costly!