Pension Auto-Enrolment

May 20, 2013

As you will be aware, the government has introduced new requirements for employers to provide pensions, and all employers will eventually need to offer a contribution equivalent to at least 3% of earnings to a workplace pension for qualifying employees. 

The rules have been in place since October 2012, but different employers will be required to comply at different dates, with larger employers generally being impacted first.  Employers with fewer than 50 staff will typically not need to have new pensions in place before 2015, but all employers will need to factor this into their cashflows and business plans sooner than that.  This is going to be a cost, so it will make sense to manage the change to see whether it also provides an opportunity to review remuneration packages as a whole, with a new emphasis on retirement provision.   

In the first instance, employers will need to find when their new duties fall due, by identifying their “staging dates”.  If you need assistance in this, please contact Grazyna Baldwin who will put you in touch with our trusted adviser, Duncan MacPherson at Blacktower, or download Blacktower Financial Advisers' Workplace Pension Reform leaflet.