Are You Prepared For Auto Enrolment
Here’s Our Guide To Auto Enrolment
Auto enrolment (dealing with workplace pensions) has been in place since October 2012, with this in mind, an update on an article previously written seems pertinent.
All employers, including very small businesses that only employ one person, are required to sign up certain employees for automatic enrolment. This means that the employee will automatically have their workplace pension organised for them by their employer without having to do anything themselves. As it is the responsibility of the employer to do this on the employee’s behalf, they will be the one at fault if it is not organised by the required date.
Who Needs Auto Enrolment
Auto enrolment doesn’t apply to all employees. It is required for employees who:
- Are not already involved in a pension scheme
- Are aged between 22 and state pension age
- Work in the UK
- Earn more than £10,000 a year
Once an employee is enrolled, they will need to start paying into the pension scheme, as will their employer and the government.
The Pension’s Regulator has provided some excellent resources for employers and their advisors, if you are unfamiliar with auto enrolment then it would be my recommendation that you look at these resources. One of the first tasks is to identify when the employers staging date is, this is vital to help establish a timetable and action plan.
Before the staging date, employers will be required to not only auto enrol eligible members of staff, but also inform them of all the details and pick an appropriate pension scheme. A staff member will also need to be nominated to take charge of this process.
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