Auto Enrolment

The biggest change to pensions for a generation is now well underway.

All employers are required to automatically enrol individuals between age 22 and State Pension Age into a qualifying workplace pension scheme (auto-enrolment), and to pay contributions for anyone earning over the trigger point for paying Income Tax. The employer will have to pay some of the contribution, and could pay all of it.

Apart from the cost of paying the contributions, it is feared the biggest challenge employers face is record keeping. The rules, which we understand are being strictly enforced, are complex and there are fines of up to £50,000 for failure to follow them. The Pensions Regulator has written to employers warning that they are required to:

  • Assess their workforce
  • Identify who to automatically enrol
  • Choose a pension scheme
  • Register with the regulator
  • Pay the correct pension contributions
  • Process any opt-out notices
  • Process opt-in or joining requests
  • Avoid inducements and prohibited activity
  • Keep accurate records
  • Provide workers with information about the changes

All employers, whether they have existing pension arrangements or not, will need to consider very carefully how they are going to comply with the regulations.

Your Perspective Corporate Solutions adviser will offer an audit of your current pension arrangements and will provide you with a comprehensive written report enabling you to plan for this huge change in employer responsibilities.