Workplace pensions are pension schemes arranged by employers for their staff – as opposed to private pensions which are arranged by employees themselves. Traditionally, larger businesses with more than 250 employees have been legally obliged to provide workplace pensions for all eligible staff – known as ‘auto enrolment’ of employees onto the schemes.
However, the law has changed, and all businesses – even those with fewer than 250 employees – are now legally obliged to provide workplace pensions under the Pensions Act 2008.
If you’re a small business owner who does not offer a workplace pension scheme for staff, you are now legally responsible for ensuring that your business complies with the laws before the end of 2017.
Whilst it may sound like there is plenty of time before the 2017 deadline, setting up a workplace pension scheme and ensuring all eligible employees are enrolled can be a time consuming process – sometimes taking as long as a year to complete. So, it’s absolutely essential that you act now.
You should expect to receive a letter from The Pensions Regulator explaining:
Which tasks you need to complete to comply with auto enrolment laws.
The deadlines for each task that you need to complete.
Your pension auto enrolment staging date, which is the date by which you will need to be fully compliant with all laws and all eligible staff are enrolled.
Use the Duties Checker tool to find out your staging date.
Start preparing your workplace pension scheme twelve months before your staging date.
A member of our insurance panel, Aviva, is offering a range of support designed to make compliance a lot easier:
They’ve created a short video to explain what auto-enrolment is – providing a helpful starting point for understanding what it means to you: https://youtu.be/ESoce3xxC20
If you need a hand preparing your business for the regulation change, they’ve also created an interactive planning tool – which you can sign up to for free: https://www.autoenrolmentplanner.co.uk/page/employer-info
Aviva also provide quotes for setting up your own workplace pension through them – which is 5-Star Defaqto rated. Please note, pension schemes from other providers may be more appropriate for you so you should investigate those. For more information about these, please visit http://www.thepensionsregulator.gov.uk/
If you fail to comply with auto enrolment laws by your staging date, then you may be fined by The Pensions Regulator. Non-compliers will be issued with a Fixed Penalty Notice – currently £400. If you are issued with a Fixed Penalty Notice and fail to pay it within the specified time period, then you could be issued further fines up to £10,000, depending on the number of staff that you have.
Image: Courtesy of Simon Cunningham on Flickr
Thank you for getting in touch with Make It Cheaper.
We’ve received your request for a telephone call and one of our saving experts will be in touch with you shortly.
Speed things up
Whether you’re looking to have a chat about your electricity, gas, insurance, merchant services (Chip & PIN) or telecommunications, having some documentation to hand when we call will help us to help you quickly and efficiently. This could be something like a recent bill, a statement or a policy document.
Please note our office hours are 9am to 5.30pm Monday to Friday. We look forward to talking!