The government encourages workers to save for retirement, with most people having around 20 years of retirement. Workers automatically enrolled in a pension can opt out within one month and receive a refund. Employers can delay enrollment by up to three months and must re-enroll employees who opt out every three years. Failure to comply results in penalties, starting with a £400 fixed fee and escalating daily fines from £50 to £10,000, depending on the employer's PAYE size.
1.0% of the qualifying earnings until 6 April 2018, rising to 2.0% until 6 April 2019, then rising to 3.0%.
0.8% of the qualifying earnings until 6 April 2018, rising to 2.4% until 6 April 2019, then rising to 4.0%.
0.2% of the qualifying earnings until 6 April 2018, rising to 0.6% until 6 April 2019, then rising to 1.0%.
2.0% of the qualifying earnings until 6 April 2018, rising to 5.0% until 6 April 2019, then rising to 8.0%.
People who must be automatically enrolled in a qualifying scheme, with the option to opt out, are at least 22 years old, under state pension age, work in the UK, and earn over £10,000 annually.
1. Identify who's responsible for auto-enrolling agency workers
2. Establish admin and payroll systems to deal with automatic and re-enrolment
3. Review your pension arrangement to make sure it's a qualifying scheme
4. Keep your workers informed, including non-eligible jobholders and entitled workers.
5. Start contributing to the workers' pensions
6. Register with the Pensions Regulator
Manage your own pension scheme in-house, which means you'll have to set up and manage the auto-enrolment process.
Move worker from agency payroll to an Umbrella, which puts the burden of pension admin onto the Umbrella.
We were advised by leading legal firm Eversheds on implementing the new legislation. We chose the enrolment provider, NEST and we meet our obligations set by TPR and DWP.
