Workplace Pensions – is your business in?
If you are an employer with staff working for you in the UK you must register your staff for auto enrolment into a work-placed pension.
The scheme has been set up by the Government as people are living longer, yet too many people are not saving enough for their retirement. The law on workplace pensions has changed to make it easier for millions more people to build up a pension, particularly those on lower incomes.
Automatic enrolment means that staff are put into a work placed pension automatically, rather than to choose to join a pension scheme themselves. If an employee does not want to be in the pension, they must actively opt out. The deadlines to enrol range from October 2012 for large companies, with some small businesses not needing to register till 2018. Check the staging date for your company at http://www.thepensionsregulator.gov.uk/employers/planning-for-automatic-enrolment.aspx
All UK employees over the age of 22 and below pension age must be asked to join the scheme if they earn over £9,440 per annum. You'll need to write to all of your staff informing them of the changes, and you will need to contribute towards their pension. This will typically be a set % of the employees gross earnings.
Failure to enrol correctly and on time could lead to financial penalties for your company.
For more information on how to enrol your business for auto enrolment, visit the pensions regulator website: www.thepensionsregulator.gov.uk
