Pension Scheme Changes in the UK
Employers in the UK must provide a pension scheme for certain members of their workforce from 2012, in order to encourage more people to save for their retirement. As part of the reforms, you, the employer, will be obliged to make a contribution towards it.
Pension Scheme & Employers
From October 2012, employers have to:
- Provide a pension scheme for employees.
- Automatically enrol all eligible employees into this pension scheme.
- Pay employer contributions for eligible employees to the pension scheme.
- Tell all eligible employees that:
- they have been automatically enrolled onto the pension scheme.
- they have the right to opt out if they wish.
- Register with The Pensions Regulator and furnish them with details of the pension scheme.
The Pensions Regulator also states that you must not:
- Encourage employees to opt out of the pension scheme.
- Be biased towards recruitment of candidates who indicate they are prepared to opt out of the pension scheme.
- Treat employees unfairly or put them at a disadvantage because of their automatic enrolment.
These changes are to be implemented from October 2012 and will continue through to 2016. The starting date will be broadly based on the number of people you have in your PAYE scheme; therefore, employers with the largest number of workers will have the earliest staging dates. The smallest employers will have later dates from 2014.
As part of our award winning payroll services, Paycheck Plus provide full UK Payroll Service and can assist your business in reaching full legislative compliance in relation to these pension scheme changes.
For further details on how Paycheck Plus can help your UK business, speak to one of our Payroll Team today on +353 (0)41 686 3000 or visit www.paycheckplus.ie for more details of our services.