Pension auto enrolment is a complex area. However, it is important for employers to understand their obligations and ways to deal with it.
Employers become subject to enrolment duties from their particular “staging date”. Staging dates are being rolled out over an implementation period which started on 1 October 2012 and depend on the number of workers in an employer’s PAYE scheme. Once an employer has reached her staging date, she must ensure that all its eligible jobholders are auto-enrolled in a qualifying scheme from their automatic enrollment date unless they are already active members of the employer’s qualifying scheme.
Smaller employers (with fewer than 50 employees) started reaching their staging dates on 1 June 2015 and the staging period for this group runs until 1 April 2017. New businesses set up after 1 October 2012 will be assigned staging dates between 1 May 2017 and 1 February 2018.
In light of the above, where employers did not provide pension to their employees initially, they may now want to consider reviewing/amending their contract to reflect the above.
Pension auto-enrolment is not going to go away and therefore should not be ignored by employers. Do not just bury your head in the sand. Deal with it and it will be worth it!
For more information, advice or assistance on pension and pension auto-enrolment, [uji_popup class=”contact-form” id=”693″]Contact Us[/uji_popup]
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