COMPULSORY WORKPLACE PENSION

This problem of lack of saving towards retirement is not a new discovery and the Government has sought to help address this with a compulsory workplace pension for all who are employed. This was established as a legal requirement in October 2012 but will take about 5 years to roll out to reach all employers. They have started with the larger employees and between now and 2017 all employers will have to set up a company pension scheme and this will include mandatory contributions by both employers and employees to the employees’ pensions. In many cases employers already have a company pension which can be adapted to the requirements of the Compulsory Enrolment legislation. If a company does not have a pension scheme, it will need to make its own arrangements. The requirements are very precise and employers will need to allow adequate time and resources for putting them in place. It is recommended that an employer starts dealing with this 12 months before their “Staging Date” – the date at which they are required to have the Workplace Pension up and running. Note: an employer can find out when it’s Staging Date is by going on-line to: www.thepensionsregulator.gov.uk/employers