Auto-enrolment pensions were introduced in October 2012 – yet many companies are still not fully aware of their obligations. Every employer needs to have a pension scheme in place and automatically enrol ‘eligible workers’ into that scheme and make contributions on their behalf. Workers can then choose to opt out.
Automatic-enrolment is not an option. By law, all employers, even those with only one employee, will have to select a pension scheme in which to enrol their employees.
Many employers already have existing pension schemes but often membership is restricted. Employers therefore need to review these schemes in the light of the new auto-enrolment rules to ensure whether their existing pension provider is the most suitable to meet the new requirements. Getting expert advice is crucial.
When you have to introduce auto-enrolment depends on your ‘staging date’ – which is based on the size of your company. Very large employers, with over 120,000 workers, had to do this from October 2012. Other employers are scheduled to follow, with all to be enrolled by February 2018.
The new employer duties are covered by hundreds of pages of legislation, so you will need expert financial advice to help you through the whole process, including when the changes affect you, what you need to do, what will happen if you do nothing and finally how to set up a qualifying scheme.
The sooner you start the process, the better, so contact Kellands Hale now.