Automatic Enrolment and
Law surrounding Workplace Pensions has changed significantly in
response to a number of trends, namely that on average people
are living longer and that approximately 7 million people in the
UK are not saving enough for their retirement.
Automatic Enrolment has been introduced by the Government to
help more people save for their future retirement provision,
through their workplace. For the first time in history,
employers have been required by law to set up a Pension Scheme
and fund employer contributions for their workforce.
Automatic Enrolment has been recognised as an effective way to
overcome people's saving inertia by turning the default from
non-saving into saving.
Between now and 2018 every employer in the UK (with more than one worker) will need to have
a Workplace Pension Scheme in place and start enrolling their
workers. Many workers will be automatically enrolled and others
will need to be enrolled if they request it. By October 2018,
over 1.2 million employers are going to enrol 11 million
eligible workers into a Workplace Pension Scheme.
The Department of Work and Pensions (DWP) is taking employer
compliance very seriously and The Pensions Regulator (TPR) has
been given the scope to "police" employers, who will face hefty
penalties for failure to comply with their duties. For the first
time in the history of UK Pensions, employers will be required
Without a doubt, the introduction of Automatic Enrolment
Workplace Pensions will present a number of new challenges to
employers' businesses. We believe employers will need expert help and
support to understand the impact and changes that will need to
be made within their businesses in order to comply with their
new employer duties.
Who Do Not Currently Have a Company Pension Scheme
Employers with no existing Pension Scheme will have the most to
do - depending on the number of staff they employ. Employers may
need expert help and guidance to understand their duties, the
impact on their business and the necessary changes they will
need to make. They will need to review their workforce,
ascertain and identify which employees will be subject to the
Automatic Enrolment requirements and implement and administer a
Qualifying Workplace Pension Scheme that allows them to satisfy
their employer duties.
Who Have an Existing Company Pension Scheme
Many employers may well believe that their existing pension
arrangement will meet the criteria for a "Qualifying Workplace
Pension Scheme". Whilst it may be possible to utilise the
existing scheme to meet the Automatic Enrolment requirements, we
would strongly recommend undertaking a fully Independent
Evaluation of their scheme to ensure that it is indeed "fit for
purpose". It is imperative that the scheme meets the "Quality"
criteria and is able to facilitate all the features and
requirements for a qualifying, compliant scheme, including
Automatic Enrolment, acceptance of minimum contributions,
default investment options and most importantly a robust
Find Out More.....
how to prepare for Automatic Enrolment by contacting us
to request a copy of our 'Employers Step by Step
Guide to Automatic Enrolment'.