Auto enrolment help much needed in changing times
As many businesses will be aware, workplace pension law has changed somewhat in recent times.
The Pensions Act 2008 meant every employer now has to legally help their employees put money aside for retirement by automatically enrolling eligible workers into a workplace pension scheme and also contributing towards it.
Very much a hot topic for Solihull accountants and indeed those of our profession throughout the land Automatic Enrolment applies to all businesses in the UK who employ at least one member of staff.
To help businesses readjust, the statutory contributions they need to make will be phased in over time, and whilst this helps it still is somewhat unpalatable to many.
The reason this came about is purely to do with a growing and ageing population and the Government looks unlikely to be able to afford to keep state pensions at their current level far into the future.
With most of us living longer than previous generations, it means more retirement years and all of us needing a pension fund able to help us through these years.
The reason Auto enrolment was introduced was to tackle the changing times, whilst also aiming to make it easier for employees to contribute to a pension scheme, and also get them to benefit from employer contributions.
Automatic enrolment affects all employers and each of them will be given a date from which their change will happen, known as your ‘staging date’.
It is a great worry for many companies and is broadly based on the number of people under a company PAYE scheme.
However, what helps is that you do have the option to postpone your staging date should you need to.
Now the Pension’s Regulator is contacting companies whose staging dates are in the next 12 months or so. However, if you’re unsure when yours is you can find out by contacting The Pensions Regulator.
Remember it’s your duty to assess your workers to determine whether or not they will need to be automatically enrolled into a pension scheme. It is not a question that can be avoided indefinitely.
For those worried about auto enrolment, we at AIT Accountants can help put your mind at ease having already assisted many businesses in Solihull and the Walsall region, in particular.
We are on hand for any questions, so feel free to contact us to help you prepare. If you have any queries at all please, pick up the phone now, we are happy to assist. Just call us on 0121 711 1957.