September 27 2013.
The law surrounding the provision of a pension for employees is significantly changing and employers need to be prepared for the changes to pension law even if they only have one employee.
Why the change?
The government has determined that around seven million people are not saving enough to give them a sufficient retirement income and approximately 750,000 employers do not offer a work place pension. This change has been brought in to actively encourage people to plan more effectively for their retirement and provide the framework by which employers initiate that change.
What is changing?
Every employer is required to;
Know your staging date
- Ensure they have a qualifying pension scheme.
- Automatically enrol all eligible workers into a qualifying pension scheme, if they are not already an active member of a qualifying scheme.
- Make pension contributions on the employee's behalf.
- Register and comply with The Pensions Regulator (TPR).
- Provide employees with information about auto enrolment and how it will affect their pension saving.
The staging date is the date from which an employer must engage in auto enrolment.
The stating dates are based on the size of the employers PAYE scheme (how many employees were engaged as at 1 April 2012). The staging dates are;
For more information and a copy of the checklist CLICK HERE
- Employers with 250 or more employees; February 2014.
- Employers with between 50 and 249 employees; April 2014 - April 2015.
- Employers with 50 employees or less; June 2015 - April 2017.
- Employers with less than 30 employees will have a staging date based on the PAYE scheme reference.