The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it. This is called automatic enrolment.
It is important that employers know their staging date (which is the date their automatic enrolment duties come into effect), and are ready to comply with their duties by this date. There are a number of steps which will need to be completed, including assessing who needs to be automatically enrolled, checking records, setting up payroll processes, choosing a pension scheme, communicating with staff, and completing a declaration of compliance with The Pensions Regulator.
Progress to date
To date, more than 40,000 large and medium-sized employers have been through the process, with 5 million workers now automatically enrolled into a qualifying pension scheme. Over the next 3 years, a further 1.3 million small and micro employers (employers with 1-49 workers) will need to comply with the law and automatically enrol their workers into a pension scheme, and pay contributions into it.
Awareness among small and micro employers of their workplace pension responsibilities is lower than that of medium and large employers, and research indicates that this group are more likely to leave plans to the last minute, and need additional advice and support to help them comply with their duties on time, in order to avoid the risk of a fine.
Further information and who to contact
February’s key communications are attached to this overview, with regular, updated content available to you. If you would like to continue receiving this information on a regular, monthly basis, please contact:
Angela Bell, Communications Partnership Manager
The Pensions Regulator