Over the coming years, businesses of all sizes will need to make plans for auto enrolment. Auto enrolment has been introduced as a way of getting more people saving for a personal pension and it places a legal duty on every employer to automatically enrol workers into a workplace pension scheme who:
- are not already in one
- are aged between 22 and State Pension age
- earn more than £10,000 a year
- work in the UK
The pension scheme will either be one selected by you or a generic scheme operated nationally by a number of recognised providers. Individuals can opt out of the scheme but the idea of auto enrolment is to overcome apathy and inertia by putting everyone into a scheme by default.
As most SME’s won’t have offered company schemes to their employees before, the move to auto enrolment will require them to identify and select a suitable scheme for their staff and manage the administrative aspects of the joining process and any opt outs.
Every company is being issued with a staging date, the point at which they need to have a scheme in place and be notifying employees of their rights and the value of contributions. If you have not already been notified, you will receive a letter shortly setting out the lead time to your date.
Here at Evans Weir, we have worked with our partners in financial advice and payroll systems to ensure that we can introduce you to the right pension providers and also manage all of the behind the scenes administration required to enrol staff when the time comes.
We know you are busy and these things can often feel like another onerous task, so rest assured we will make the process as simple and as straight forward as possible for you.