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Workplace Pensions

"Who will guide you through the maze of compulsory workplace pensions?"

How the changes will affect you as an employer.

Starting from 1st October 2012:

  • Employers will be required by law to enrol tax paying employees aged over 22 years into a qualifying pension scheme and contribute a minimum of 3% of earnings.
  • No employers will be exempt, regardless of size
  • Any staff who choose to opt out must be enrolled again into the scheme by the employer every 3 years
  • Existing non qualifying staff must be enrolled once their age or earnings make them eligible
  • Employers cannot give their staff advice or encourage or assist with opting out
  • The employer must register their chosen pension with The Pension Regulator and certify their contributions
  • The employer must keep records for a minimum of 6 years.
  • Businesses will be judged by their existing staff and potential recruits by the quality of their pension scheme.

What if employers choose not to act

Employers can receive a criminal record in addition to the following fines if they choose to ignore their obligations under the new law.

An initial one off £400 fine to the employer for non compliance can be followed by:-

1-4 Employees
5-49 Employees5
0-249 Employees
250-499 Employees
500+ Employees
  £50 fine per day
£500 fine per day
£2,500 fine per day
£5,000 fine per day
£10,000 fine per day

We can guide you through these changes and help you set up a scheme that best suits you and your staff and keeps you in control of your company benefits package.

For more information, please contact us.

 

 

Workplace Pensions Staffs is a division of Abacus Associates IFA Stafford