A workplace or group pension is a way for your employees to save for their retirement that is arranged by you, the employer.
Under the Pensions Act 2008 the law on Workplace or Group Pensions has changed. Now every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is referred to as ‘Auto-enrolment’.
The employees qualifying for auto-enrolment are:
Employees aged between 22 and State pension age
Employees who earn more than £10,000 per year (2016/17)
Employees who work in the UK
With auto-enrolment the onus is on you, the employer to ensure that you have a qualifying pension scheme in place and be able to comply with the new laws.
The qualifying schemes have specific requirements to be satisfied and depending on the size of your company you will need to comply by certain staging dates.
These Staging dates are as follows:
Employer Payroll Size
250 or more
Between 1 October 2012 and 1 February 2014
50 – 249
Between 1 April 2014 and 1 April 2015
30 – 49
Between 1 August 2015 and 1 October 2015
Fewer than 30
Between 1 January 2016 and 1 April 2017
New companies established after 1 April 2012
1 May 2017 – 1 February 2018
Our advisers at Tom French & Associates follow a rigorous financial planning process to ensure that the correct scheme is selected and set up for your business.