Employers – Do you know your staging date?
The Pensions Regulator recommends you allow between 12 and 18 months to meet your auto enrolment requirements.
Failure to comply can result in daily penalties of between £50 and £10,000.
Call us now to find out your employer responsibilities.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
As of October 1st 2012, there are new duties on employers to help more people save for their retirement. All employers will need to act to comply with the law. Advice to employers on Auto Enrolment and workplace pensions is not regulated by the Financial Conduct Authority.
What are the changes?
You must automatically enrol certain members of your workforce into a pension scheme and as an employer you will need to make a contribution towards it. The law came into force for large employers from 2012. Workers known as ‘eligible jobholders’ will need to be automatically enrolled into a pension scheme that meets a number of conditions based on the level of contributions paid or the benefits that they receive.
Eligible jobholders are workers who:
- Are at least 22 years old
- Are below state pension age
- Earn more that £10,000 p.a. (minimum earnings threshold)
- Work in the UK
You will also have a requirement to tell any other workers you may have that they can opt into the pension scheme.
When is this happening?
Each employer will be given a date from which the changes will have to be in place. This is known as your staging date.
- The first staging dates were in October 2012. Your staging date will be broadly based on the number of people you have in your PAYE scheme
- Employers with the largest number of workers will have the earliest staging dates
You can find what your staging date is likely to be by visiting the link below. Please be aware you will depart from the regulatory site of Ashton Gate Financial. Neither Ashton Gate Financial nor Quilter is responsible for the accuracy of the information contained within the linked site. www.tpr.gov.uk/staging
What will you have to do?
You will have to automatically enrol your eligible jobholders into a qualifying pension scheme and make an employer contribution towards it.
The main things you must do are:
- Provide a qualifying scheme for your workers
- Automatically enrol all eligible jobholders to the scheme
- Pay employer contributions for eligible jobholders to the scheme
- Tell all eligible jobholders that they have been automatically enrolled and they have the right to opt out if they want to do so
- Register with the Pensions Regulator and give them details of your qualifying scheme and the number of people you have automatically enrolled
What contributions will you have to make?
You must contribute at least 3% of your workers’ earnings, although you can choose to pay more if you wish. The worker will be responsible for paying the rest. They will get tax relief on their contribution and the total combined contribution will be a minimum of 8%.
How will you know if your scheme is a qualifying scheme?
Many existing occupational and group personal pension schemes will qualify. To be a qualifying scheme, the minimum contributions must be made. Even if it doesn’t qualify at the moment, you may be able to change the scheme rules or amend the terms of the policy so that you will be able to use it by the time your staging date comes around.
What if you do not have an existing pension scheme?
If you don’t have an existing pension scheme, you may wish to take advice on how to find a suitable pension provider. We will be delighted to offer you advice to guide you through automatic enrolment. We are a business with over 40 years combined experience and we are committed to providing advice. We have already set-up new pension schemes under the new rules for a number of employers and offered help and assistance to their members of staff.
We offer 1:1 meetings for all employees and we take away the administrative burden of the pension scheme from employers. We have attached references from some of the companies we have already assisted and look forward to helping you in the future.