As part of the Government’s attempts to ensure a prosperous future for the UK’s growing and ageing population, the Pensions Act 2008 has been introduced. This confers certain duties on employers, who must by law create a workplace pension scheme and then contribute to any policies on behalf of employees who are paid via a PAYE scheme.
This is called Automatic Enrolment, because there should be no responsibilities from the employees’ perspective in terms of having to apply or register. Instead, the onus is entirely on employers, and even companies with existing workplace pension schemes must check that their current plans are suitable. A point of contact has to be nominated, and each company will have been provided with a staging date when automatic enrolment duties come into effect. In an attempt to simplify matters, a trust-based savings scheme called NEST has been established that will ensure companies of any size can meet their automatic enrolment responsibilities.
It’s estimated that automatic enrolment can take up to a year to prepare for, and many employers are uncertain of where to start. The team at Select Investment Managers have therefore dedicated time to studying these new regulations, and are in a position to offer honest and practical advice about how to establish a suitable scheme and enrol staff. Our experts can also ensure that the correct balance is struck between employee salary contributions, employer contributions and Government tax relief.