The advent of science and technology has enabled us to lead a much healthier and longer life than before. A longer life span makes it necessary for us to save for our long retirement. Accumulating a pension seems much easier now that we have alterations in the workplace pension laws. Millions of seniors have been helped as a result of these changes, especially the individuals that belong to the low income group.
The concept of automatic enrolment hasn’t been understood by a majority of employees across the globe. Through automatic enrolment, the employer places his staff in a preferred pension scheme instead of letting them choose one. In case the employees aren’t interested in joining a pension scheme, they must explain their willingness for opting out. This is meant to urge all employees for joining the pension scheme.
When do I go about it?
Your staging date is the point from when your automatic enrolment duties are considered to be effective. Once you key in your PAYE reference, your tool will show the staging date. All letters that you receive should mention your duties. You may visit autoenrolmentguide.co.uk if you choose to gather more information.
Your staging date marks the beginning of a three month period within which may opt for the postponement of your enrolment. Till your postponement period ends, you may not enroll any employee. There are a few good websites that show you through information on postponement of automatic enrolment.
How do I include someone in a pension scheme?
Following factors are important while considering your staff for automatic enrolment:
- 22 years old as per the state mandated age of pension
- Employed within the UK
- Drawing an income over £10,000 every year
For an automatic enrolment, you’ll need to use a pension scheme. Staff that doesn’t satisfy the above criteria should express their willingness to be involved in your pension scheme. You may include them only when they are eager to join. When it comes to your staff, you must contribute a minimum amount for each member that joins your scheme. A few other staff may also choose to indulge in your pension scheme. You’ll need to include them in a particular scheme wherein a different set of rules govern and there’s no need for you to contribute as an employer.
Your duties towards your staff are determined by the type of worker they are. The type of a worker is determined by his earnings and his age. Identifying your workforce is very important for considering automatic enrolment.
Do I need to do anything else?
Automatic enrolment affects every employee and their financial situation. The employer needs to explain the details of his chosen scheme to individual staff members. Your duties as an employer and the rights of your employees play a crucial role in determining all information that you need share with them. Once you’ve compiled your responsibilities, you must convey it to the regulator. You’ll easily be able to catch more information on regulatory and reporting duties.