Pension Auto-Enrolment advice from [[Your name here]] - Fareham

Pension auto-enrolment legislation, introduced from 2012, requires all employers to automatically enrol eligible employees into a qualifying workplace pension scheme. Employers must also pay a minimum contribution into the fund.

Auto-enrolment is being phased in gradually, starting with larger employers from 2012. Each employer will be assigned a 'staging date' from when their duties commence. Eventually there will be a minimum overall contribution rate of 8% of each employee's qualifying earnings. 3% of this must come from the employer, with the balance consisting of employees' contributions and associated tax relief.

Don't have an existing scheme?

If you don't currently have an existing qualifying pension scheme, you will need to put an auto enrolment scheme in place effective from the date the duties first apply. This could involve amending your scheme to meet the new rules, or else installing a new occupational or personal pension scheme.

A qualifying auto-enrolment scheme could use the Government's relatively straightforward scheme, the National Employment Savings Trust (NEST),

[[Your name here]] can help

Whatever the staging date, it is essential that the employer plans for the changes in good time. All employers will need to understand what makes a pension scheme an automatic enrolment scheme, and what other criteria make it a qualifying scheme. [[Your name here]] can help employers to plan for the introduction of auto-enrolment and to fulfil their new legal duties.

Key steps for employers:

  1. Know your staging date - when to act - The staging date will be based on the number of persons in your PAYE scheme on 1 April 2012. You can view the staging timetable here.
  2. Assess your workforce - Employers will need to identify those employees classified as eligible jobholders, as well as those categorised as non-eligible jobholders and entitled workers. [[Your name here]] can help you to assess your employer duties in relation to these individuals.
  3. Review your pension arrangements - You might have an existing scheme that you can use or adapt for automatic enrolment, or you may need to set up a new one - this is where [[Your name here]] can assist.
  4. Communicate the changes to all your workers - The law requires employers to write to all workers (except those aged under 16, or 75 and over) explaining what automatic enrolment into a workplace pension means for them.
  5. Automatically enrol your 'eligible jobholders' - The Pensions Regulator's website contains guidance on the process for auto-enrolment, however, please contact [[Your name here]] for one-to-one advice tailored to your company.
  6. Register with The Pensions Regulator and keep records - Employers will need to register with the Pensions Regulator within four months of their staging date.
  7. Contribute to your workers' pensions - Employers must make ongoing contributions to workers' pension schemes. Employer contributions will be phased in, starting at 1% before rising to 3% in 2018.

From our offices in Fareham, [[Your name here]] can work alongside employers to help them fulfil their new auto-enrolment duties. Please contact us for further information and advice on our pension services in Fareham and the surrounding area.