Beckford James is a member of the PMI AE Accredited CPD Programme.
From October 2012, all employers have to comply with legislation contained within the Pensions Act 2008. There is a staged introduction whereby employers have to auto-enrol their employees into a workplace pension scheme. The specific date for an employer to start this process will be determined normally by your tax code.
So, as an employer you must:
- Provide the required information on the pension scheme to employees.
- Automatically enrol eligible employees in a qualifying pension scheme.
- Deduct any jobholder contributions from their salary and pay a contribution on behalf of an eligible member.
- Process any opt outs and refunds.
- Review any existing Schemes, to satisfy the definition of a qualifying scheme.
- There could be significant increase in payroll costs for employers who do not currently have any form of workplace pension scheme.
- There will be an increase in payroll costs for most employers with existing pension schemes due to the auto enrolment requirement, which is likely to increase pension scheme membership significantly.
- There will be additional administration involved with the auto enrolment process, staff turnover and complexity of checking membership data against legislative requirements. And this requirement is ongoing.
At Beckford James we can help you assess your options, review your workforce/pension costs, review your existing scheme or implement any recommendations. If you would like further information or a copy of our free guide to employer duties, please contact us at AE@beckfordjames.com