The introduction of auto-enrolment into
pension for employees has been widely reported this week, leaving some
employers vaguely uneasy about what they have to do and when.
At present if you have five or more staff,
you should have a stakeholder pension in place. From October 2012 the largest
employers with over 120,000 workers will have to comply with Pension Auto-Enrolment
under the Pensions Act 2008. Smaller employers with under 40 employees won’t
have to auto-enrol till August 2015. To find out when your business will be
affected, click staging
date.
All workers aged 22-65 earning more than the
income tax personal allowance and who are not already members of a qualifying
pension scheme, must be enrolled in an automatic enrolment scheme from the
relevant staging date.
Contributions start with a minimum of 2% of
qualifying earnings (with at least 1% from the employer), and rise to a total
minimum of 8% of qualifying earnings (with at least 3% from the employer) from
October 2017.
For many employers that don’t currently
provide pension schemes, this will be a big and unwelcome additional cost, and
which they may recoup by not making incremental pay increases in those years.
However the more people that get adequate pension cover in place, the more that
will actually be in a position to retire when they reach the age of 65. Go to www.tpr.gov.uk/pensions-reform
for more information. Read also our
longer article here.
Click here to read about our Employer Protection
Scheme & protect your business against Tribunal claims
James
Carmody
RECULVER SOLICITORS
Tel: 0207 324 6271 | Fax: 0207 477 2276 | info@reculversolicitors.co.uk
12-16 Clerkenwell Road, London EC1M 5PQ
www.reculversolicitors.co.uk
| www.kent-employment-solicitors.co.uk
| www.croydon-employment-solicitors.co.uk
Reculver Solicitors Ltd (Company No. 6910066) | Solicitors:
James Carmody*, Carol Aylott, Kate Henry.
Regulated & authorised by the Solicitors Regulation
Authority, SRA No. 565284 (*Director)
No comments:
Post a Comment