The government have introduced new legislation to auto enrol all eligible employees in the UK into qualifying workplace pensions. The reason that they have done this is because as a society, our population is ageing, living longer and the ratio of people working to those retired is slowly decreasing. This means that in the future, there will be less people working to pay taxes and more people retired and needing support. The workplace pensions reform was brought in to ensure that people were better prepared for retirement and would have less of a dependance on the state.
Certax have been working with the Pensions Regulator, NEST and IRIS Payroll Software to provide a full Auto-Enrolment solution.
But what is Auto Enrolment?
In the past, many workers missed out on valuable pension benefits because their employer didn’t offer them a pension, or they didn’t apply to join their company’s pension scheme, automatic enrolment changes this.
As of October 2012 it was made compulsory for employers to automatically enrol their eligible workers into a pension scheme and the employer must also pay money into the scheme.
Since 2012 automatic enrolment is being phased in, starting with the largest UK employers. So if you’re eligible (see below) and haven’t yet been enrolled into your workplace scheme, you should be by April 2019, at the latest (subject parliamentary approval).
Now you know what it is, are you ready for automatic enrolment? Here’s how to prepare;
The Pensions Regulator is urging businesses to start planning for auto enrolment at least 12 months before their staging date. Here are our 4 steps for developing your auto enrolment Plan:
If you are now less than 12 months to your staging date and are unsure what to do, speak to us and get up to speed on the changing legislation and what it means for your business. Don’t leave it too late.