Over the next few years, UK employers will be required by law to provide a pension scheme for their employees – an initiative the UK government has named ‘automatic enrolment’.
To get a quick overview of the most important things you need to know about auto enrolment, check our 3-point breakdown below. Or, for the government’s official stance on company pension schemes and auto enrolment, you can visit their dedicated webpage here.
1. You’ll Have a Specific Staging Date
Auto enrolment is being phased in gradually, meaning different companies will have different deadlines for setting up their pension schemes.
This is called your ‘staging date’, and will be determined by the number of people you employ.
2.You Might Not Need to Change Anything
Do you already have a pension scheme in place? If so, great – you might be able to use the same scheme once auto enrolment kicks in.
You can check whether or not your existing scheme meets the auto enrolment criteria by visiting the Pension Regulator’s website here.
3. You Must Enrol Certain Workers
You are not obliged to enrol everybody onto your pension scheme, but you ARE obliged to enrol workers who are aged between 22 and the State Pension age, who earn £10,000 per year or more, and who work in the UK.