What is Auto-Enrolment – and do I have to do it?
Auto-Enrolment is a Government initiative designed to encourage more people to put money aside for their pensions and to reduce the burden of an aging population on the State.
It will make sure that all eligible jobholders are entered into a qualifying workplace pension scheme from the staging date, leaving them with some retirement provision to call upon in later life.
And yes, you have to do it!
If you haven’t already had notification of your staging date (the date by which you have to have a provision in place) you will get it soon.
The Pensions Regulator, the body set up to monitor compliance on this issue, is already dishing out fines for companies who miss their staging dates. A fixed penalty notice of £400 will be issued, then a daily penalty can be applied of £50 to £10,000 depending on the number of staff you have.
What do I have to do?
The last few staging dates are coming up between now and April 2017. To find out yours please click here and put in your PAYE reference. When you get it you will need to:
Firstly comply! Do not bury your head in the sand.
Find a scheme. As an employer you have the responsibilty for running this scheme in the best interests of your employees.
Keep compliant. You will have an ongoing duty to ensure the scheme is performing well and all your eligible employees can access it.