From 2012, changes to pensions law will affect all employers with a least one worker in the UK. The changes will be phased in between 1 October 2012 and 1 September 2016 and the timings (or staging dates) will depend on company size.
Employers will need to:
Assess their workforce and identify which workers need to be automatically enrolled
Choose a pension scheme
Automatically enrol these workers into a pension scheme
Make contributions on their workers’ behalf
Register with the Pensions Regulator
Provide workers with information about the changes and how the workers are affected by them
Keep accurate and specific records about workers and the pension scheme(s)
The Government has issued some guidance which provides information for employers about the forthcoming changes and what they need to do. It is also aimed at employees, so they can understand how the changes will directly affect them and what their employer’s obligations will be.
The guidance includes information on:
Workplace pension reform
Automatic enrolment – the basics (including timings, opting out and re-joining and contributions)
Choosing a pension scheme for automatic enrolment (including employer registration and details about NEST – the National Employment Savings Trust)
Timeline for review recommendations
The guidance can be found here.
In addition, the Government has developed interactive tools to provide you with an overview of what you will need to do.
If you would like to talk to us about how to review your people strategy in line with these reforms then give us a call on 0845 463 3231.