Auto-enrolment – The Facts
Most employers are aware that auto-enrolment for pensions has arrived, but not all employers, particularly those that are not yet affected, are unsure about what it really means and what they have to do to comply.
GA’s blog over the next few weeks will supply an all you need to know guide on pension auto-enrolement.
What is Auto-Enrolement?
In 2012 the Government introduced new obligations that will eventually apply to all employers with workers in the UK. This initiative was to increase the number of people saving for retirement. Prior to the introduction of auto-enrolment, only 40% of people within working age were saving for their retirement.
When does it start?
It already has started for companies with 10,000 to 120,000 workers. Other companies will be affected according to their staging date which is dependent upon the number of workers they have.
For instance employers with 250 to 9,999 workers will have a staging date between 1 April 2013 and 1 February 2014. Companies with 50 – 249 workers will have a staging date between 1 April 2014 and 1 April 2015. Companies with fewer than 50 workers will be affected from 1 June 2015 to 1 April 2017.
Will I be notified?
The Pensions Regulator are responsible for ensuring that employers comply with their obligations. It will write to each employer to confirm their staging date (usually around 12 months beforehand).
Next Blog will include:
Which members of staff should be auto-enroled?
Categories of worker
What will we have to do?