Auto Enrolment Pension

Pensions Auto Enrolment will have an effect on any business in the UK that employs staff, whether it’s just 1 person or 1000. Starting from October 2012, and phasing in depending on the size of the employer, all eligible workers will need to be automatically enrolled into a Qualifying Workplace Pension Scheme with mandatory minimum contributions from the employer and the employee.

It is essential to be prepared, to ensure the changes required to systems are identified and all parties, including HR and payroll, fully understand what is required of them. Employers need to understand their duties associated with these new laws, as they could be potentially time consuming, complex to manage and costly to administer:-

Compliance Requirements for the Employer

Companies will be required to do the following:

• Access eligibility of all employees
• Register with the regulator
• Ensure that their pension schemes comply with all regulations
• Manage the enrolment process for all employees
• Manage and update the opting in and out of employees
• Manage contributions
• Ensure that inducements to opt out are not offered
• Provide regular updates and employee communications
• Re-enroll opted out employees on a regular basis
• Keep accurate records of all the above