Workplace pension law changed in October 2012 and all employers now have a legal duty to help their employees save for retirement. Automatic enrolment is a key part of the Workplace Pension Reform.
This means that certain employees must be automatically enrolled into a pension scheme, and the employer will need to make a contribution towards this.
All employers will need to have a compliant pension scheme in place by 2018.
Why is this happening?
Quite simply, the government may not be able to afford to keep the State Pensions at its current level in the longer term and with people living longer there will be an even greater strain on the government’s purse strings.
Automatic enrolment is being introduced to help tackle these issues. The Pensions Act 2008 introduced new legislation to encourage employees to save for retirement and gives employees improved access to a pension scheme, with eligible workers being automatically enrolled. All employers are required to comply with the scheme, which will be enforced by The Pensions Regulator.
Automatic enrolment aims to make it easier for employees to join and contribute to a pension scheme and they will also benefit from contributions made by their employer.
The introduction of auto enrolment is likely to be a costly and time consuming exercise for employers. Here at David Allen our expert team are equipped with the knowledge and experience of setting up and running pensions schemes and will remove the burden from you.
For more information contact our team.
We are here to help you understand everything there is to know about the new workplace pension scheme and auto enrolment.
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