The UK government has introduced a new law designed to help workers save more for their later life.
Workers who are:
Enrolment into a workplace pension may vary depending on employment circumstances:
In 1901 there were 10 people working for every pensioner in the UK. By 2050 it is expected that this will change to just 2 workers
The date workers are enrolled depends on the size of the company they work for and is being rolled out over six years.
Employers who use Defined benefit or Hybrid schemes can delay their staging date until 30th September 2017.
Will have to start automatically enrolling their workers from October 2012 to February 2014. Some employers may choose to start earlier.
Will start automatically enrolling their workers from April 2014 to April 2017.
Will have to start automatically enrolling their workers from June 2015 to April 2017.
Will start automatically enrolling their workers from May 2017 to February 2018.
*established after April 2012
= 10 employees
Your staging date is the date by which you must be ready to comply with the new auto enrolment regulations. Although some of these are yet to be confirmed, an indication of the timeline for companies’ staging dates is attached.
Is the minimum percentage that has to be contributed. This means the worker’s contribution, the employer’s contribution and tax relief added together.
The minimum contribution level is just that, a minimum. Employers will be able to contribute more than the minimum if they wish. Individuals can also contribute more than the minimum if they decide to.