Some employers will have already started to receive letters from the Pensions Regulator regarding auto-enrolment but if you have not, then look out for these letters as they will start appearing on your desk over the next year!
Auto-enrolment is a new law that requires every employer to automatically enrol its workers into a workplace pension scheme if they are aged between 22 and State Pension age and earn more than the personal allowance limit, which for 2015/16 is £10,500.
The date your business will need to be ready for auto-enrolment will depend of the amount of employees you have and if this is less than 50, this will be sometime between June 2015 and April 2017. The Pensions Regulator will write to you to advise you of your ‘Staging Date’, the date you should be ready by, but they recommend that you start the process up to a year in advance of this date.
There are numerous things that need to be done before your staging date, some of which can be quite time consuming so it is important that you start to look at what is required and get some advice and support now if you think you need it.
Not all employees need to be auto-enrolled. There will be some who have a right to opt in to the scheme but not enrolled automatically so it is important to know your staff. Communication is key so being prepared and letting the staff know what is involved should be done as early as possible.
Where an employee has previously opted out of the pension scheme, the employer must auto enrol the member of staff on their staging date, for the employee to then opt out again if they want to.
Auto-enrolment is an ongoing process, something that should be reviewed on a monthly basis as whenever a new employee starts, reaches the income threshold or becomes old enough to opt in, the employer has a legal obligation to enrol them.
Should you want any further information regarding auto-enrolment then please do contact us, either by calling 01743 284315 or by emailing us firstname.lastname@example.org