You might remember the adverts from a few years ago, in which a variety of employees and employers shouted “We’re all in”, but do you remember what they were about?
The answer is the workplace pension scheme, and if you have 30 or more employees then you may already be “in”.
Under a law introduced in 2012, all employers must offer a workplace pension scheme and automatically enrol eligible workers – those who are between 22 and state pension age, earn more than £10,000 a year and who work in the UK. This requirement has applied to larger employers since October 2012 and will apply to all employers by 2018.
If you are not already “in”, there are a number of things you need to know. Firstly, if you haven’t done already, you should find out when your automatic enrolment duties come into effect, known as the staging date.
If you pay your staff through a pay as you earn (PAYE) scheme, you can find out using this calculator from The Pensions Regulator. If you don’t pay through PAYE, your staging date will be 1 April 2017.
It is worth noting that even if your employees are not eligible and you don’t have to enrol them by law, they can still join the scheme if they want to and you can’t refuse.
When you enroll your employees you must notify them in writing, including the date you added them, the type of pension and who runs it, how much you will contribute and how much they will have to pay as well as how they can leave the scheme.