For the first time, UK companies will be compelled to offer employees a pension contribution and each company will have to have a pension in place into which employees will automatically be enrolled. This could be an existing or new pension scheme (like a Group Personal Pension or Stakeholder pension) as long as it “qualifies”. If you do not have a pension scheme or do not introduce one to suit your requirements then you will be able to adopt the Government’s scheme, known as the National Employment Savings Trust, or NEST.
These new auto-enrolment obligations will impact on employers of all sizes, and will be phased in between 2012 and 2016.
Employers will have responsibility for paying contributions into a pension – both from them and the employees – as well as communicating with staff and ensuring the pension scheme is compliant.
The hope is that these new auto-enrolment obligations will help the estimated 7 million workers who are not putting money aside for their retirement to start saving for tomorrow, today.
It is important to note that there is no obligation for companies to offer the NEST pension scheme to employees. Whilst the NEST scheme is available to all employers it has features which make it suitable for some and less desirable to others.
It is also possible to introduce your own pension scheme for some employees and the NEST scheme for others.
Communication and Resources – Engage with us and we will help you with this process.
Consultation, Analysis and Review – Whether it is checking your current scheme, or detailing what will be necessary to meet your obligations, we can help.
Strategy and Implementation – Once you have a plan, we can help implement it. Together we can help control costs and design a suite of relevant services.