Employers with fewer than 250 employees will start having to auto enrol their eligible employees into an eligible pension scheme from 1st April 2014
Employers with fewer than 50 employees will start having to auto enrol their eligible employees into an eligible pension scheme from 1st April 2015
Who will this apply to?
• An employee who is aged between 16 and 74
• An employee who works in the UK
• An employee for whom you deduct income tax and National Insurance contributions from their wages.
All employers will be required to register their business with the Pensions Regulator
Employees will have the right to opt out, within 1 month after they have been automatically enrolled in order for any contributions made to be refunded.
Any employee who has opted out will need to be automatically re-enrolled again every 3 years, if they are still working for you
Employers Minimum Contributions
Staging date to 30th September 2017 – 1%
1st October 2017 to 30th September 2018 – 2%
1st October 2018 – 3%
Some things an employer will need to do…….
Set up a qualifying scheme;
Understand the different criteria defining a qualifying scheme,
Identify eligible workers and jobholders;
Understand when to auto-enrol eligible jobholders;
Auto-enrol eligible jobholders at the appropriate time;
Adapt their payroll systems;
Know when their staging dates are;
Understand the information requirements;
Understand the timing of the information requirements;
Understand the employer choices about when to automatically enrol;
Register with the Pensions Regulator at the right time;
Re-register with the Pensions Regulator at the right time;
Inform eligible employees of their right to opt-out;
Re-enrol those who opt-out at the correct time;
Refund the contributions to those who opt-out in the opt-out window;
Keep records for at least six years of all actions and outcomes;
Inform postponed jobholders within one month of the original date;
inform jobholders the date that they will be enrolled into the scheme;
contribute at least a minimum amount towards their employees’ pensions;
Tags: ifa nottingham, financial advice nottingham, financial adviser nottingham, independent financial advice nottingham, independent financial adviser nottingham, pensions nottingham, investment nottingham, mortgage nottingham, life insurance nottingham, critical illness nottingham, income protection nottingham, private medical insurance nottingham,