Automatic enrolment in pension schemes began in October 2012 making it mandatory for all employers (including charities and those in the public sector) to automatically put a percentage of employee’s pay into a pension scheme every payday.
Employers are obligated to enrol employees who are:
- Aged between 22 and State Pension age
- Earning more than £9,440 a year
- Working in the UK
My Employees Aren’t Eligible, Do I Still Need to Register?
Whether a business’s employees meet these requirements or not it is compulsory that all employers submit an online declaration of compliance with The Pensions Regulator. At the end of 2013 over 5,400 businesses had met their duties and registered with The Pension Regulator. Failing to do so could result in enforcement action and a fine.
When Do I Need to Register?
Your deadline for registration with The Pension Regulator is four calendar months before your staging date so allow plenty of time.
Charles Counsell, executive director of automatic enrolment at The Pensions Regulator said:
“It’s really important to arrange your pension provision in plenty of time. We urge employers to have an agreement with a provider in place six months before staging. Don’t just assume the first provider you contact will be able to help you.”
Figuring Out Your Auto Enrolment Staging Dates
Your staging date is based on the total number of people on your PAYE scheme. Usually your staging date can only be brought forward but not pushed back (visit The Pension Regulator for excerptions).
If you are unsure of your stage date you can find this out by enquiring with your PAYE reference which can be found on your P35 (employer annual return) or P30BC payslip booklet.
What to Do Next
The rules are a little less clear for employers with any of the following criteria:
- If you employ less than 50 staff
- Not every member of staff is based in the UK
- You have no Pay As You Earn (PAYE) scheme
- You have no Defined Contribution (DC) pension scheme
If any of these points apply to your business it’s worth contacting a legal professional to ensure that you are legally complying with automatic pension enrolment. For a second opinion, or for any questions you have with regards to facing a pension claim, call our hotline on 0161 115 6164 or contact us now.
