The government introduced measures in the 2008 and 2011 Pensions Acts designed to increase workplace pension saving.
Under the “auto enrolment scheme” employers will have to enrol all of their qualifying workers into a workplace pension scheme and the employee will have to actively opt out if they do not want to be a member.
Contributions will start at 1% from the employee and 1% from the employer. Once all employers have implemented the scheme, contributions will increase in stages with firms eventually putting forward at least 3% of their employees’ salary, and the employee adding at least 4%. Their contributions will also benefit from 1% tax relief. Full contributions must be paid from 1 October 2018.
Each employer is assigned a date on which its duty to auto-enrol commences. This is known as a staging date and is based on the number of employees in the PAYE scheme (s) operated by that employer.
To confirm your business staging date you can use the regulator’s interactive tool at www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx. You will need your business PAYE reference to do so.
Rothmans are working with employers to help them decide on the best course of action for their business and working with them to put the required changes in place. To receive a personalised Initial Assessment report, including a comprehensive checklist please call your local office of Rothmans.