Auto-Enrolment relates to legislation recently introduced by the Government to help workers save for their retirements. All employees are required to be enrolled into a qualifying workplace pension scheme if they are not already in one.
The employer is required to contribute a minimum of 3% of each employee’s qualifying earnings by 2018. This 3% is to be met with a 5% employee contribution which meets the minimum 8% contribution target.
Employees eligible for Auto-Enrolment:
- Don’t already have a private pension plan
- Aged between 22 years and state pension retirement age
- Earn over £10,000 per year (tax year 2014/15)
- Ordinarily work in the UK.
If a worker does not fit into the above criteria, they still have the right to join a qualifying workplace pension. They just need to inform their employer that they would like to “opt in” and they must be allowed to do so.
Auto-Enrolment came into force in October 2012; the size of the company will determine when within a five year period, the individual employer’s staging date will start.
Professional advice will need to be sought well ahead of the prescribed staging date, as there are many key decisions that an employer will need to make.
How can Jeffreys Henry Financial Services help you?
Our bespoke service is designed to provide you with in-depth information to enable you to understand how you can manage your current pension scheme or set up a new qualifying pension scheme.
- We can provide an analysis of your current scheme and offer options, tailored to suit your specific requirements
- Enable you to manage the costs between now and your staging date
- Provide a dedicated team to handle all types of technical and ongoing member communication and support issues
- Qualified financial advisers that can help employees make investment decisions
- Appropriate systems to help with the administration of running your scheme
- Guidance on legislation changes and how they might affect you and your scheme
- Governance management support
- Bespoke Fee agreement.
Auto-enrolment need not be an arduous task and we would be delighted to guide you through every step of the process in order to help you understand and prepare for your employer duties.