Changes to pension law
From 1 October 2012 changes to pensions law affected all employers with at least one worker in the UK. All employers in the UK will have to automatically enrol staff into a qualifying pension scheme. Employers will be required to:
- automatically enrol certain workers into a pension scheme;
- make contributions on their workers' behalf;
- register with The Pensions Regulator (see their website below); and
- provide workers with certain information about the changes and how they will affect them.
There are various steps to the auto enrolment process and these are labelled below.
Pension auto enrolment steps
Step 1 – Know your staging date – this will be based on the number of people in your PAYE scheme and is set out on the Pensions Regulator website.
Step 2 – Assess your workforce to ascertain your ‘eligible jobholders’, ‘non-eligible jobholders’ and ‘entitled workers.’
Step 3 – Review your pension arrangements – do they meet the qualifying criteria for auto enrolment.
Step 4 – Communicate changes to your workforce.
Step 5 – Auto enrol your ‘eligible jobholders’ as from your staging date.
Step 6 – Register your qualifying scheme with the Pensions Regulator.
Step 7 – Contribute to your workers’ pensions.