A little bit of background on the Pension Scheme…
In 2012, the UK Government introduced a new law which made it mandatory for all employers to provide a workplace pension scheme and furthermore to automatically enrol employees who are eligible into the scheme. The scheme was rolled out in 2012/13 with blue chip corporations in mind. However, by 2018, the scheme will be mandatory for all employers in the UK.
This article will discuss workplace pension demands, the purpose of automatic enrolment and what your company can do to help navigate this bureaucratic hurdle. Companies have historically provided pension schemes. However, the demise of the final salary pension schemes and the closures of big blue-chip schemes due to massive deficit issues created a problem within the sphere of private sector pension provision.
The Government’s plans dramatically change this under-provision of pension support and assistance within the private sector. However, as an employer, this provision massively increases your administrative and management responsibility towards your employees. This change is predicated on employees ‘opting-out’. The Government wants all employees to think seriously about their pensionable income. This is a small step in this wider social debate.
What does automatic enrolment mean?
Your staging date is fast approaching. This is the period by which your workplace pension scheme should be activated for employee take-up. The pension regulatory body has also announced a penalty scheme to help disincentivise the non-take-up of the workplace pension. Therefore, it is crucial that your organisation sets up a workplace pension scheme for your employees. However, the onus is on you as the employer.
Automatic enrolment requires fundamentally reappraising your employee pensionable activities. There is a myriad of diverse pension platforms – including the newly established National Employment Savings Trust (NEST) which was designed and launched by HM Government as a savings platform for auto-enrolment. However, before you reach your staging date, you need to get professional support to help you understand the myriad of diverse obligations that are now your responsibility as a workplace pension provider.
How can Prestige Business Management can help?
The accountancy team at Prestige Business Management can help by providing insightful support for SMEs looking at developing a workplace pension scheme before the start of their default staging date. The team can discuss a range of issues and provide bespoke support solutions to help you navigate the pitfalls of workplace pension provision. Why not call the team directly on 0203 773 2927 or alternatively why not email us at [email protected] to discuss your needs further?
The Pension Regulator has a whole host of information on how the Automatic Enrolment Pension Scheme affects employers, visit there website https://www.thepensionsregulator.gov.uk/en/employers or get in touch with us.