Auto Enrolment

Workplace Pensions

What’s happening?

To help all of us to save for our retirement, automatic enrolment has been introduced by the Government and is being rolled out throughout the UK. This means employers are enrolling their employees into a workplace pension as an easy way to help them start saving for the future. 

The Pensions Regulator acknowledges that Auto Enrolment represents a massive cultural change in the UK, with the aim of improving the standard of living of all those in retirement.  This is a long term ambition in which providing a pension for employees becomes simply a part of being an employer in the UK

Auto Enrolment is government legislation and the fines for non-compliance are substantial

Employer

When will this happen?

Each employer is given a staging date based on employee numbers. You may have received a letter from The Pensions Regulator notifying you of your staging date. Alternatively you can check your staging date by inputting your HMRC PAYE tax reference number using the following link:



Employees

Who needs to be automatically enrolled?



On your staging date, you will need to automatically enrol your employees in to a pension if they’re:


  • Aged at least 22 but are under State Pension Age
  • Earning more than £10,000 a year (£833 a month or £192 a week)
  • Not already an active member of a qualifying workplace pension scheme
  • Working, or usually working, in the UK.

If your employees don’t meet this criteria on your staging date, but they do in the future, you will need to automatically enrol them at that point.

 

Employees

Can employees join even if they are not automatically enrolled?

Yes. As long as they’re aged between 16 and 75 they are able to join the pension scheme at any time.  As long as they earn £5,824 a year (equal to about £486 a month or £112 a week), you as the employer will have to contribute from the time they join. If an employee earns less than this, the regulations mean that they are not be entitled to contributions from the employer   

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