Auto enrolment refers to statutory changes to the Workplace Pensions law which came into effect from October 2012. The changes mean that every employer now has legal duties to help their employees save for retirement.
What does this mean for you? It means you must enrol some of your employees into a qualifying workplace pension scheme and make contributions towards it, a process known as auto enrolment.
Auto enrolment staging dates
The new law comes into force over the next five years. The point at which your company must comply is called a staging date. Staging dates are determined by the number of employees you have.
Staging dates span from October 2012 to 1 April 2017 starting with the UK’s largest employers, many of whom will probably now have pension schemes in place. You can find out your staging date using The Pensions Regulator staging date timeline .
Whenever your staging date; now is definitely the time to start thinking about implementing plans for auto enrolment.
Preparing for auto enrolment
There are 7 steps to becoming auto enrolment compliant.
1. Know your staging date and what is needed.
2. Assess your workforce to understand who should be automatically enrolled (eligible jobholders), who can opt-in (non-eligible jobholders) and who is exempt (entitled workers).
3. Provide a qualifying pension scheme for your workers.
4. Automatically enrol all eligible jobholders into the pension scheme.
5. Communicate the changes to your employees. Tell eligible jobholders they have been enrolled and they have the right to opt out if they wish.
6. Register with The Pensions Regulator and provide details of your qualifying scheme and the number of employees you have automatically enrolled.
7. Along with your employees, contribute towards the pension scheme.
Watch the Pegasus Auto enrolment video
Please contact us for further information or assistance with meeting your Auto enrolment requirements.