1st June 2015 – an important date for Automatic Enrolment and smaller employers
Automatic enrolment for larger employers to enrol their employees into a workplace pensions scheme has been around for the best part of 2½ years. However, 1st June 2015 was a significant date for smaller employers. This was the date when the first employers with less than 50 employees start to stage – the date at which automatic enrolment duties come into effect.
Between now and April 2018 the vast majority of the employers in the UK will find they must implement a Pension Scheme that conforms with Auto-Enrolment legislation, by enrolling employees into a workplace pension scheme if they are:
- are aged between 22 and State Pension age
- earn more than £10,000 a year
- work in the UK
Automatic enrolment can be time consuming
The steps involved in automatic enrolment are detailed and can be time consuming, and include the following:
- Knowing your staging date
- Provide a point of contact for The Pensions’ Regulator
- Check who you need to enrol
- Create your Workplace Pensions action plan
- Work out the costs of your Workplace Pensions
- Check your payroll process
- Choose a pension scheme
- Assess and enrol your staff
- Write to your staff
The message is to start early in choosing a Scheme or working towards making your existing Scheme qualifying and to make sure that your PAYE system is up to date enough to cope with Auto-Enrolment.
Possible fines for non-compliance
There are indications that The Pensions Regulator will be set to fine companies that do not comply. Our experience to date, and indeed the advice from The Pensions’ Regulator is to start the process 12 months before your staging to avoid being caught up in the bottleneck of employers having to stage in the next 2 years.
If you need any help and advice on automatic enrolment, especially if you are a smaller employer, please contact us or call on 0121 693 0690.