How will the new automatic enrolment requirements affect you?

On 1 October 2012, new workplace pensions laws came into effect which require employers in the UK to automatically enrol their employees into a pension scheme. The new laws will affect you:

  • If you have one or more workers in the UK. There is no exemption for small employers
  • Regardless of whether you already provide a pension scheme for your employees, you will need to ensure the scheme meets the necessary quality requirements and automatically enrol all those employees who have not yet chosen to join the scheme

When will you be affected?

This depends on the size of your company. When you are required to comply depends upon your "staging date," a date between now and April 2017, which we can help you to work out.

What do you need to do?

There are several things that employers need to do in order to comply with the new laws. These include:

  • Offer a pension scheme which meets the requirements of the legislation
  • Automatically enrol employees over the age of 22 who earn above the earnings trigger (known as "eligible jobholders") into the pension scheme
  • Make employer contributions to the pension schemes in respect of eligible jobholders
  • Allow other employees to opt into the pension scheme (and in some cases make employer contributions)
  • Provide your employees with specific information about their rights in relation to the pension scheme
  • Keep records and register with the Pensions Regulator

How can we help?

Clyde & Co LLP pensions team are offering an implementation service to help you comply with your requirements under the new laws. In order to help you manage costs, we will review your current pensions arrangements and provide you with basic advice and documentation for a fixed fee.

Clyde & Co automatic enrolment advice

We are offering a 3 stage service for a fixed fee:

Stage One

Advice on:

  • how to work out the date on which you have to automatically enrol your employees (known as your 'staging date'); and
  • whether your current pension schemes meet the new requirements

Stage Two

A meeting with one of our pensions team to discuss:

  • setting up processes to meet your legal requirements;
  • which pension scheme to use for the purposes of automatic enrolment; and
  • options for postponement of your obligations

Stage Three

The law requires you to issue certain notices to employees. We will help you to draft communications which are:

  • written in plain English, and jargon-free;
  • comply with the legal requirements; and
  • fit your company style

We can also offer further bespoke services, such as helping you to establish a new pension scheme for automatic enrolment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.