Below are some answers to questions that you may have and some key words explained that you may have come across in the press or in the media.
What is Auto Enrolment?
Auto Enrolment is a key part of the Workplace Pension Reform, under the Pension Act 2008 all employers in UK will need to automatically enrol their employees into a pension shame and make a contribution towards it. The law has already come into force for some large employers and by 2018 all the companies employing workforce will need to enrol. No matter whether you are trading on Self Employed basis or as a limited company as long as you employ one or more employees you need to enrol and comply with the regulation.
Auto Enrolment aims to make it easier for employees to join and contribute to a pension scheme. This has been introduced to encourage people to save for their retirement due to the fact that people are living longer and there is shortage in the pension fund and also the government concerns that large number of people aren’t saving at all for their retirement.
What does it mean for your business?
As an employer, you’ll have new duties and legal responsibilities to help eligible members of your workforce save for retirement. The key here is to gain the necessary understanding and prepare for it.
What is a Staging date?
This is a date given by a Pension Regulator by which changes have to be in place. You will be contacted 6 to 12 months before the staging date to enrol your employees to a pension scheme.