Workplace Pensions Summer Update
The law on workplace pensions has changed: now every employer in the UK must put their staff into a pension scheme and contribute towards it under the Pensions Act 2008. This is known as ‘automatic enrolment’, which is your legal duty as an employer.
Although more than eight million employees have signed up for a workplace pension since the launch of automatic enrolment, over half a million employers are still to enrol.
No matter what stage of enrolment you are at, remember that you can run a quick check at any time to ensure you’re taking the required steps by the right dates:
Before you begin, you will need:
- Your PAYE reference (found on your payroll software, or letters from HMRC or The Pensions Regulator)
- 10 digit letter code (can be found , or from letters from The Pensions Regulator)
- Age and approximate earnings of anyone you employ
If you need further information or advice on automatic pension enrolment, visit , or call the IGA member helpline on 0845 305 4230.
The Pensions Regulator has warned that employers should be wary of falling for a scam involving the sale of fake certificates that suggest they do not have workplace pension -duties.
They are investigating at least one company offering what it describes as “Certificates of Auto Enrolment Exemption” to employers.
Be clear on the tasks you are doing and if you become aware of a scam like this, let The Pensions Regulator know. to read their guidance on how to spot a scam.
The Pensions Regulator are sending out over 230,000 letters in July, reminding employers about forthcoming increases to the minimum pension contributions they make to staff.
Contributions are being increased gradually over time. From 6 April 2018, the minimum amount employers have to pay in will be 2% of their staff’s pay, and the amount their staff put in will rise to 3%. On 6 April 2019, this will rise again to 3% from the employer, and 5% from their staff.
If you receive one of these letters and need further guidance, visit .
For the first time, The Pensions Regulator has published research into how UK employers are meeting their duties following the completion of their declaration of compliance.
Around 96% of employers asked said they are confident they are fully compliant with their ongoing duties towards their staff. The analysis shows AE is business as usual for employers, and that it’s less complicated than they thought – with most micro employers spending just an hour and a half a month on their duties.
Remember to use the to track your ongoing requirements.
If you set up your business between October 2016 and June 2017, your staging date will be 01 January 2018.
If you set up your business between July 2017 and September 2017, your staging date will be 01 February 2018.
The Pensions Regulator will shortly be sending out letters to these employers to inform them of their staging date, what their duties are, and when they will need to complete them by.
Remember, automatic enrolment is your legal duty and if you don’t comply you could be fined.