Date: October 2012
In force from October 2012, this legislation places the onus of pensions firmly onto the employer by making them “auto-enrol” all relevant workers into a qualifying pension scheme.
For many small employers (less than 50 employees) the compulsion to meet this legislation will not happen until the middle of 2015, thereby meaning that we have plenty of time to plan and implement an appropriate strategy to meet the demands of this law. Each employer will have their own “staging date” to when they must first comply.
Apart from the auto-enrolment of employees & workers, there will also be a requirement for both employer and employee to contribute to the scheme. The minimum contributions are 3% employer, 4% employee & 1% by way of tax relief paid directly into the individuals’ pension pot. Again these minimum contribution levels will be “phased in” over the first 3 years after the company’s staging date.
How does the Pension Act 2008 affect your business?
Aside from the financial consequences of auto-enrolment, employers need to be prepared:
If you’re wondering: How much will I have to pay? Are my existing arrangements acceptable? How does this affect my freelance and contract workers? What is “auto-enrolment”? Then get in touch!
How we can help? At La Playa Financial Management we understand your organisation; we can help lessen the pain by…
We’re able to offer advice through the entire solution, as well as providing ongoing information and support. We’re also happy to offer a free, no obligation review of any existing arrangements you may have, and when and how this legislation will affect your organisation.
Contact Henry Metcalf for more information, firstname.lastname@example.org or 01223 200674.
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