Work Place Pension Scheme
The new Pensions law requires that Employers must automatically enrol certain staff members into a good quality pension scheme and make contributions towards it. This affects all employers with staff working for you in the UK who are: The actual employer duties will be based on the ages and earnings of your staff on your staging date (the date when the new law is switched on for your business):
It’s called automatic enrolment because employers will need to enrol certain staff into a pension scheme ‘automatically’, without those staff having to do anything:
- aged between 16 and 74
- work in the UK
- for whom you deduct income tax and National Insurance contributions from their wages.
- Whose annual Gross earnings is over £9,440
All employers are required to register with the Pensions regulator within four months of their staging date, even if they have no employer duties for their staff.
Employers use their PAYE reference number to can get their staging date from the calculator on the Pensions regulator’s website.
If you fail to comply with your duties, the regulator may take enforcement action and issue a notice and / or a penalty.
The Pension scheme
To be able to fulfil your automatic enrolment duties, you’ll need to put a pension scheme in place. It’s important that you choose the right one.
It is recommended that you get advice from an adviser authorised by the Financial Services Authority.
Existing Pension scheme
If you find you already have a pension scheme in place and want to use it, you’ll need to check with your scheme provider whether it can be used for automatic enrolment. If not, you may need to choose a new pension scheme