Auto Enrolment

Auto enrolment is a government initiative that requires all employers to set up a company pension scheme and automatically enrol all eligible employees. In this way, workers can save for an additional income in retirement on top of any state benefits to which they may be entitled.
All employers have been given a staging date when they must have their scheme in place. If you don’t know when it is, you can find it at The Pensions Regulator by entering your PAYE code. Then you need to:

  • Plan your timeline
  • Choose a qualifying scheme
  • Assess your workforce for eligibility
  • Communicate with your workforce
  • Collect and pay in contributions
  • Manage opt-outs, leavers and new joiners

….. and if you don’t

Number of Employees Amount of Daily Fine
500 + £10,000
250 – 499 £5,000
50 – 249 £2,500
5 – 49 £500
1 – 4 £50

Source: AVIVA Life and Pensions website

Link:

http://www.thepensionsregulator.gov.uk/automatic-enrolment.aspx

http://www.thepensionsregulator.gov.uk/docs/the-essential-guide-for-automatic-enrolment.pdf

http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx