Auto Enrolment

From 1 October 2012 to February 2018 all employers will have to automatically enrol all eligible employees into a qualifying workplace pension scheme and contribute to their plan.

Why is this happening?

A large number of the working population in the UK are not saving enough for retirement or taking advantage of pension schemes provided by their employers that may be on offer. As a result the Government is putting more responsibility on employers to help encourage more people to save:

  • Employers will be required to automatically enrol eligible employees into a Qualifying Workplace Pension Scheme (QWPS). This could be an existing scheme if it meets certain criteria or a low cost alternative by another provider.
  • Employers will eventually be required to contribute a minimum of 3% of each employee’s ‘qualifying’ earnings, which is intended to incentivise them to join.
  • Employee’s contributions and tax relief will be added to this to meet a minimum 8% contribution rate from 2018.

The Government recognises that these reforms need employer support so are proposing key measures that are designed to minimise the burden on you:

  • Contributions can be phased in.
  • Certification is available for existing company schemes, allowing many employer schemes to continue as they are with minor changes.
  • A ‘light touch’ but effective compliance regime for the employer duties.

Planning ahead

The new auto enrolment legislation will have implications for all sizes of business and every employer will have duties to complete before their start date.

Champain are able to assist you in a number of ways to ensure your business fully complies with this new legislation. To find out how we can help you and your business we have put together our Auto Enrolment Brochure or please contact us to arrange an appointment with one of our advisers.