All employers in the UK have to ensure that staff have a workplace pension
Whether we like it or not, whether we want to do it or don’t, we have no choice. The government states that by 2018 all employees must be enrolled in a workplace pension.
As employers, we are all in the same boat, only some are paddling faster than others!
Auto enrolment explained
If you are a business owner and employ one person or more, you must enrol qualifying employees into a pension scheme and comply with all automatic enrolment aspects of the Pensions Acts 2008 & 2011.
The government has introduced Auto Enrolment because more and more pensioners are being supported by fewer workers. There are currently 4 people of working age supporting each pensioner in Britain, by 2035 this number is expected to fall to 2.5, and by 2050 to just 2.*
The legislation helps every employee to save more for their own retirement as the State Pension scheme will only provide a basic, affordable safety net for us all.
Staging date – do you know when yours is?
There are a number of staging dates depending on company size. The first of these was back in 1 October 2012 and the last will be in 1 February 2018. To find out about your staging date either visit the pensions regulator website or give us a call on 01329 559 30 and we can help you.
How many companies have implemented workplace pensions?
More than five million employees have already been placed into workplace pensions and eventually as many as 1.3 million employers will have automatically enrolled up to 10 million eligible workers into a workplace pension scheme.**
The table below from the Pensions Regulator website displaying the fines that you may receive if you miss your staging date.
For 1-4 employees the Prescribed daily fine is £50
For 5-49 employees the Prescribed daily fine is £500
For 50-249 employees the Prescribed daily fine is £2,500
For 250-499 employees the Prescribed daily fine is £5,000
For 500+ employees the Prescribed daily fine is £10,000
Legislation breaches / non-compliance will also invoke £400 Fixed Penalty where non-compliance continues for each breach
For additional information visit the Pensions Regulator ‘What happens if I don't comply?’
Help! I haven’t started and need to get a move on!
Make us your first port of call for automatic enrolment. Phone us on 01329 559 130 or email us on: firstname.lastname@example.org. John or Liam will give you a call and run through the process with you. You are not alone, plenty of other business owners are now picking up the phone and making the call to start the process.
Once auto enrolment has been implemented for your company, you can take a back seat in the boat and let the others do the rowing!