Voluntary Action Rotherham

Workplace Pensions - the Law is changing
 
From 2012, changes to pensions’ law will affect all employers with at least ONE worker in the UK.
Summary of the changes that Employers will need to do:
  •  Automatically enrol certain workers into a pension scheme, an eligible jobholder is aged between 22 and state pension age and earning above a certain amount (currently £7,475)
  •  Make contributions on their workers’ behalf
  •  Register with The Pensions Regulator
  •  Provide workers with certain information about the changes and how they will affect them. 

When are these changes happening?

  • The new employer duties will be staggered over 4 years
  • Each employer will be allocated a date reflected by their employers reference number, the earliest staging date will be 01/04/2014
    and the last one currently will be 01/01/2016
  • To allow flexibility employers can choose to bring forward their staging date.
 
What will employers need to do?
  • Identify who to automatically enrol
  • Choose a pension scheme, the Government has established a pension scheme called ‘National Employment Savings Trust – NEST’ which has a public service obligation and must accept all employers that apply
  • Register with the Regulator, which is an online process
  • Make contributions, the rules of these schemes must require the employer to pay an overall minimum contribution of at least 8% of the worker’s qualifying earnings, of which at least 3% of this contribution must be from the employer. In most cases, Government tax relief will account for 1% of the total 8%
  • Process any opt-out notices, there is an opt-out period of 1 month
  • Process opt-in or joining requests
  • Avoid inducements and prohibited activity
  • Keep accurate records
  • Provide workers with information about the changes

What should employers do now?
  • Look up their provisional staging date at www.tpr.gov.uk/staging or talk to Liz O’Hara at Voluntary Action Rotherham
  • Plan for when they might need their pension scheme in place, including planning when and how they will assess their workforce
  • Budget for these changes by looking at future funding bids and incorporating the additional employers’ costs
  • Look out for further information and guidance from the regulator.

Further information can be found on the following websites: