Automatic Enrolment legislation was introduced in October 2012 and under the reforms, employers are required to automatically enrol certain members of their workforce into an Automatic Enrolment Workplace Pension Scheme and contribute towards it.
Since its introduction, mainly large and medium-sized companies have had to comply to date. However, since June 2015, companies with less than 50 employees are now having to comply. You may even need to set up a pension scheme if you employ a nanny!
The Pensions Regulator estimates approximately 512,000 employers will need to comply with the legislation in 2016 with a further 660,000 in 2017.
The date for compliance is known as your Staging Date. The latest employer awareness research which is published every six months by the Regulator, noted that only 38% of small or micro employers have an accurate knowledge of their Staging Date suggesting many employers are not yet prepared.
If you are responsible for workers in a company or other employer, we recommend that you speak to an adviser to understand the legislation and ensure you comply with the legislation, as the fines for non-compliance can be significant. Taking into account the number of employers who are staging in the next two years, we suggest this is done sooner rather than later, to ensure successful and seamless implementation.
In order to support you in this area, our Consultants can provide you with relevant information and assist you with the implementation of an appropriate Scheme, suitably tailored for your business. We have already assisted well over 50 companies in setting up their own pension schemes that meet the legislation and will be delighted to help you.
If you would like further details please contact one of our consultants here.