The law on workplace pensions has changed and now, Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called 'automatic enrolment'.
Whether you're a hairdresser, an architect or employ a personal care assistant, if you employ at least one person you are an employer and you have certain legal duties.
Auto enrolment will see businesses become legally obliged to offer a pension scheme to its employees by 2018.
So how are British employers fairing so far when it comes to implementing the scheme?
The following information is derived from the Pensions Regulator and gives us an insight into Britain’s auto enrolment uptake to date:
- 401,462 – The number of employers that confirmed to The Pensions Regulator that they have met their duties by completing their declaration of compliance during the period
- 24,033,000 – The number of total workers of the employers in a scheme at the time they declared their compliance
- 7,279,000 – The number of eligible jobholders automatically enrolled into an automatic enrolment pension scheme
- 9,859,000 – The number of workers who were already active members of a qualifying scheme on the staging date
- 432,000 – The number of eligible jobholders who have had defined benefit or hybrid scheme transitional arrangements applied to them
- 6,462,000 – The number of workers who do not fall into the previous categories
If you are an employer and have not started the auto enrolment process please be aware it is a lengthy one. Ideally, you should begin the process AT LEAST six months prior to your staging date. Find out your staging date by simply inputting your PAYE reference number. This is determined by the number of employees in your business at April 2012.
The process can be a little overwhelming, so why not pass this to an experienced external company, such as Acumen Accountants & Advisors? Our team can take care of the letters to staff, liaising with the pension providers, thus freeing you up to continue with your everyday tasks.