Auto enrolment

What is Auto Enrolment?

Workplace pension law is changing: You have new legal duties to help your employers save for retirement, and the responsibility for complying will rest with you, the employer.

Automatic Enrolment is a key part of the Workplace Pension Reform, it means you'll need to automatically enrol certain members of your workforce into a pension scheme, and you'll need to make a contribution towards it.

Why is this happening?

The Government may not be able to afford to keep state pensions at their current level in the longer term. 

People are also living longer and are likely to sustain a longer retirement and the size of their pension fund will need to be greater to fund this.

"The government estimates about seven million people aren't saving at all or enough for their retirement."

Automatic enrolment is being introduced in to tackle these issues. The Pensions Act 2008 introduced new legislation to encourage employees to save for retirement. This will give employees improved access to a workplace pensions scheme and eligible workers will be automatically enrolled. As an employer you will be required to comply with the new pension scheme which will be enforced by The Pensions Regulator.

Auto Enrolment aims to make it easier for your employees to join and contribute to a pension scheme. They will also benefit from contributions from their employer.  The statutory contribution levels will be phased in giving you time to adjust.

What is my staging date?

Your automatic enrolment staging date is the date your duties come into force. This law has already come into force for large employers, such as Marks and Spencer, and by 2018 all small businesses must have auto-enrolled their eligible employees.

Find out your Auto Enrolment staging date through the Pensions Regulator.

To find out more about Auto Enrolment and what you'll need to do, watch our video:

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