An Introduction to Automatic Enrolment
25 January 2018
The new automatic enrolment legislation came into affect on 1 May 2017 and means that all employers must automatically enrol certain workers into a workplace pension scheme.
Essentially, automatic enrolment places an obligation on you to offer a workplace pension to all employees, regardless of earnings and automatically enrol employees earning a certain amount into your scheme.
Even if you do not have any employees, you still have a duty to inform The Pension Regulator you are not an employer or you could face escalating fines.
What is Automatic Enrolment?
Automatic enrolment was introduced by the Government in the 2008 Pensions Reform Act as a result of identifying a gap in pension provision.
Automatic enrolment places a duty on employers to enroll certain workers into a workplace pension scheme. A workplace pension is a way of saving for retirement that’s arranged by the employer. In addition to an employees payments, the employer and the government may also add money into the pension scheme for the employee.
How will this affect me?
After 1st May 2017, age and earnings are assessed against the eligibility criteria and everyone is assessed into one of three categories, each will affect employees differently.
Automatic enrolment specialists The Pension Counter provide support to any parishes requiring assistance, from free chats and webinars, through to a full solution for a single payment of only £99+VAT.