Auto Enrolment - Pensions

The government is introducing legislation to reform pensions.  This is because the government estimates that around 7 million people in the UK are currently not saving enough for retirement.  Life expectancy is increasing, therefore people will live longer in retirement so their pension fund will need to be greater, and also the government may not be able to afford to keep state pensions at their current level in the longer terms.   This means that employers will have to introduce an Auto Enrolment scheme.  This legislation starts from 1st October 2012.

What is  Auto Enrolment?

As an employer in the UK, you have a major role to play.

As an employer you need to have a pension scheme in place for your qualifying employees.  There will need to be a minimum level of contributions paid in by the employer and employee.  If you already have a pension scheme you will need to ensure that the scheme is fully compliant with the legal requirements. If you do not have a pension scheme yet you will need to set one up. 

Watch our Video to find out more

 

Why should you Comply?

  • Because It is the law
  • It will help to retain and motivate staff
  • An employer should adopt a Paternal Instinct

Staging Date

  • Identify your staging date
  • Implement a suitable scheme
  • Review

What happens if employers choose not to act?

Employers can receive the following fines if they choose to ignore their obligations under the new law.

An initial one off fine of £400.00 to the employer for non compliance can be followed by :-

 

Stage 1 - WARNING - Compliance/unpaid contribution notice

Stage 2 - WAKE UP CALL - Fixed penalty £400.00

Stage 3 - PERSISTENT OFFENDERS - Escalating penalty

Workers Penalty per day*
1-4 £50.00
5-49 £500.00
50-249 £2500.00
250-499 £5000.00
500+ £10000.00

The Pension Regulator will have the power to impose these penalties on employers who fail to comply with their employer duties.

*The daily rate is generally determined by the number of people in the employers PAYE scheme or the number of people affected by unpaid contributions.

How can Kingfurness & Associates Ltd help?

Kingfurness & Associates Ltd are able to fully advise and assist with the forthcoming changes.  We will complete an analysis of your business requirements and objectives and help you set up a scheme that best suits you and your staff.  Guiding you through the process smoothly to ensure you meet your obligations under the new law. 

Please contact us for further information on 01432 277877

or email: enquiries@kingfurness.co.uk 

Please take a look at the link below for information on Auto Enrolment

http://www.youtube.com/watch?v=9gcd8lj4v3m