Auto Enrolment

As the UK Government wished to promote private pensions as a way for individuals to support their needs in retirement, new pension legislation was introduced in October 2012.

It will be compulsory for all companies, who employ at least one worker, to offer their staff access to a qualifying registered pension scheme by 2018.

Each company will have a specific date when they will need a pension scheme in place, this is known as a company’s “Staging Date”.  The Pensions Regulator will write to every company to advise their individual “Staging Date”.

All companies will have to automatically enroll workers that meet certain criteria; the employer will also have to make minimum contributions to the member’s plan.

It will be the responsibility of the employer to comply with the law; those that do not will face enforcement action, starting with statutory notices and followed by penalty notices.

Even a company employing just one worker, could face a daily penalty of £50.

The advice is to start planning for auto enrolment as soon as possible.

Ward Williams Financial Services Ltd have helped numerous companies with their auto enrolment duties, please contact us on 01932 830664 if you wish to discuss this issue in more detail.