In force since 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 came into effect in 2015.
Apart from the auto-enrolment of employees & workers, there is 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?
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.
The pension and retirement landscape is changing. Many people will have to work beyond 60 or 65, and the state cannot continue to fund people’s retirement. As of 2012 the onus is now on employers to ensure that their employees save for their retirement, with a “Qualifying Workplace Pension Scheme” or QWPS. The employer can establish a scheme or enrol employees in a national (but privately run) scheme called “NEST” (National Employment Savings Trust), previously known as “Personal Accounts”.
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