Does Auto-enrolment apply to me?
Are you an employer with staff working for you in the UK? If so, then yes, automatic enrolment does apply to you and there are things you will need to do
.Whether you’re a multinational company or a chip shop that employs 3 people.
Every employer has to auto enrol staff.
What is automatic enrolment and why do I have to do it?
People are living longer yet too many people are under-saving or not saving at all for what could be a long retirement. The law on workplace pensions has changed to make it easier for millions more people to build up a pension, particularly those on lower incomes.
Automatic enrolment means that, rather than having to actively choose to join a pension scheme, staff are put into one by their employer as a matter of course. If they don’t want to be in the pension scheme, they must actively choose to opt out. It’s to encourage people to stay in pension saving.
When will I have to do it?
Automatic enrolment duties come into force for you from your ‘staging date’.Every company has a staging date. You can find this out by going to the pensions regulator and entering your PAYE number.
Or give me a call and I will do it for you.
Who do I need to put into a pension scheme?
You must automatically enrol all staff who are:
- aged 22 to state pension age
- working in the UK
- earning over £9,440 a year.
Some staff who don’t meet the criteria above are able to opt in to the pension scheme you’re using for automatic enrolment. You must put them in if they ask.
You’ll have to pay a minimum employer contribution for all staff you put into this scheme.
Certain other staff can ask to join a pension scheme. You must put these staff in a scheme, but the rules are different and there’s no requirement for you to pay an employer contribution.
It’s the age and earnings of a member of staff that determines what ‘type’ of worker they are and therefore what duties you’ll have for them.
What else do I need to do?
You’ll need to write to each member of staff individually to tell them how they’ve personally been affected by automatic enrolment.
The information you’ll need to tell them is different depending on their rights and the duties you have for them.
You must also provide certain information to the regulator about how you’ve complied with your duties
Where do I start?
The first thing you should do is find out your staging date. Once you know when this is, you can start planning to make sure you’re ready in time.
Start planning early
You’ll need to make some changes to allow for automatic enrolment, such as:
- setting up a pension scheme or modifying an existing one
- making any necessary changes to payroll so it can handle the new requirements
- putting systems in place to monitor the ages and earnings of your staff (your payroll may be able to do this)
- writing to your staff.
I will help you find out what you’ll need to do, when you’ll need to do it and roughly how long each part will take.