There are two major changes due to take place in the world of workplace pensions over the next year.
Instant pension duties for new employers
From October 2017, all new employers will have automatic enrolment duties from the date they employ their first member of staff. The gradual staging for employers will be replaced and all companies with employees will immediately have legal duties to provide those eligible with a suitable pension arrangement and make pension contributions on their behalf.
More information, and details of what new employers need to do, can be found on the Pensions Regulator website here…
Workplace pension contributions are increasing
For existing employers, the minimum amount that they and their staff need to pay into their pension scheme is going up. From 6 April 2018, the minimum amount the employer will have to pay in will be 2% of employee’s pay, and the amount their staff put in will rise to 3%.
These percentages will rise again on 6 April 2019, with the minimum amount the employer will have to pay in will be 3% of employee’s pay, and the amount their staff put in will rise to 5%.
We understand that the Pensions Regulator will be writing to all employers about these changes soon.
We continue to offer support for corporate clients with their automatic enrolment duties and workplace pensions. Please contact us should you wish to consider such support, with or without individual employee pension meetings, for more information.
This article is based on our understanding and interpretation of Government, Department of Work and the Pensions Regulator intentions and could be subject to change. It does not constitute nor is it to be construed as advice.
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