Workplace Pensions - Employers' Obligations
All employers will have to provide certain workers with a workplace pension scheme (also known as auto-enrolment) by law.
You must make an employer's contribution to the pension scheme for those workers.
When will I need to act?
You should start getting your business ready 6-12 months before your staging date. We can help you get ready in time.
Each employer will be given a date from which the changes will have to be in place. This is known as your auto enrolment 'staging date'. Your staging date will be broadly based on the number of people you have in your PAYE scheme.
As a small or medium business, your staging date is likely to be between 2014 and 2016. The pension's regulator will contact you 6 to 12 months before your staging date.
Check your staging date » with The Pensions Regulator.
If you don't already offer one you must set up a workplace pension scheme before your staging date.
Changes to the law on pensions mean that every employer in the UK has to automatically enrol certain workers into a pension scheme.
Who do I need to put into a pension scheme?
You must enrol all workers who:
Employees that don't meet the criteria above may also be able to opt in to a pension scheme and you will be obliged to enrol if they ask to be, however, the rules and requirements on contributions will be different and you may not need to make an employers' contribution for those people.
Does your existing scheme qualify?
If you want to continue using your existing pension scheme you need to check that it meets the qualifying criteria. For more help on this checkout information on The Pensions Regulator site.
If it does qualify, you can carry on using it as normal for existing scheme members. If you want to use it to automatically enrol new members, it will need to meet some additional criteria.
Key points to note:
A pension is a long term investment, the fund may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax leglisation.
Auto Enrolment advice to employers is not regulated by the Financial Conduct Authority.