Auto enrolment is coming soon and will affect everyone that employs workers in the UK.
You must set up a work place pensions scheme and automatically enrol them if they meet the criteria. You may also have to pay an amount towards their pension pot. Workers that earn over a certain amount will be entitled to a minimum contribution into their retirement pot.
These rules are being introduced gradually. They already apply to the largest employers and over the next few years they’ll apply to most. The minimum contribution is 2% initially, increasing to 8%.
Every employer has a different staging date, you can find out when yours is by visiting the Pensions Regulator’s website.
What do employers need to do now?
- Plan out your dates
- Decide how you want to manage your scheme
- Make changes to processes and systems
- Inform your workers
- Set up your pension scheme
- Enrol workers and start contributions
