With effect from October 2012 all employers have been faced with a raft of new employer duties connected to pension reform.
Included in those duties is, for the first time in the history of UK pensions, the requirement for employers to automatically enrol millions of eligible employees in to a qualifying workplace pension scheme (QWPS).
This is a major change to UK pensions. The Government has estimated that some 7 million people are either not saving enough or not saving at all for their retirement. To deliver their aims, the Government is placing the onus on employers to help in encouraging more people to save.
The key issues are:
It will be possible to gain an exemption from a National Employment Savings Trust if you offer a QWPS that meets the following criteria:
Auto-enrolment is a major issue for employers.
Research has shown that auto-enrolment is one of the most effective ways of triggering pension scheme membership and contribution. So it is highly likely that your business will incur significant additional costs from now on. The increase will be much higher for those employers who did not already offer a company pension scheme or who did not contribute to it for their employees.
Further information on auto-enrolment can be found here and on our factsheet entitled "Government Pension Reform". We also have a guide for employers that can be provided as part of the advice process.
As an employer, it is vital that you receive professional independent advice on the changes and the impact that they will have on your business. Please contact us to arrange a free no-obligation meeting.