What is the Auto Enrolment?
From October 2012 (this date has now passed) the UK Government will introduce a new pension scheme to the UK as part of their overall pensions reform strategy.
From October 2012 (this date has now passed) UK employers will be required to automatically enrol employees into a ‘qualifying workplace pension scheme’. This auto enrolment could be to your existing company pension scheme if it meets certain criteria. If it does not meet the criteria or if you do not operate a company pension scheme then your employees will be enrolled, a simple, low-cost pension scheme being introduced by the Government.
Between October 2012 and 2017, depending on the size of company, all UK employers will be required to contribute a minimum of 3% of each employee’s eligible earnings into a pension, which is intended to incentivise them to start saving towards their retirement. Employees will need to pay a personal contribution of 4% with a further 1% tax relief being added to make the minimum contribution 8%.
If you would like to get an indication when your company will have to auto enrol your eligible employees, as well as strategies to become compliant by your start date contact us for an initial meeting.