Automatic enrolment into the Government’s Pension Scheme came into force during 2012 and the process is being rolled out over the next few years. As an employer you’ll face some new duties in running your business. Workplace pensions law has changed. Every employer has new legal duties to help their workers in the UK save for retirement. You will have to automatically enrol certain workers into a qualifying workplace pension scheme and make contributions towards it.
These new duties will help more people save for their retirement and the main things you must do are:
1. · provide a qualifying scheme for workers
2. · automatically enrol all eligible jobholders onto the scheme
3. · pay employer contribution for eligible jobholders to the scheme
4. · tell all eligible jobholders that:
* they have been automatically enrolled and
* they have the right to opt out if they want to do so
* register with the pension regulator and give details of your qualifying scheme and the number of people that you have automatically enrolled
The law came into force for large employers from 2012 and smaller employers will follow. Click here to see when your organisation will have to comply by.
Even if you already offer pension arrangements for your workers, you’ll still have some new obligations to meet. One of your employer duties relating to automatic enrolment is that you are required by law to provide in writing – the right information, to the right individual, at the right time. This includes all your workers (except those aged under 16, or 75 or over), which can include fixed-term contract workers, and not just those who want to opt out.
More information on these government regulations and the deadlines for writing to your workers can be found in this document .
For more detailed information please visit the Pension Regulators site here .