Pension auto-enrolment and the new workplace pensions rules are now affecting smaller companies. Clayton & Brewill's Nottingham auto-enrolment team can help to steer you through the process to minimise its impact upon your business.
The aim of auto-enrolment is to encourage individuals to save for their retirement and, under the regulations, all businesses will ultimately need to make a minimum pension contribution of three per cent per eligible employee. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and make the necessary contributions. If you employ at least one person, you will have legal duties that you need to comply with.
Once an employee is enrolled in a pension scheme, there are minimum contributions that must be paid.
Date Employer contribution Employee contribution Total minimum contribution
Now 1% 1% 2%
From April 2018 2% 3% 5%
From April 2019 3% 5% 8%
These contributions are relevant for schemes that use qualified earnings as a basis for calculating contributions. The minimum contributions for other schemes may differ.
Choosing a scheme for pension auto-enrolment
There are a number of different pension schemes available and it’s important that you select a scheme that is right for your company. Before selecting a scheme, make sure you have reviewed your options and that the scheme meets all your requirements. It’s also essential that the scheme is appropriately regulated.
The Pensions Regulator provides some useful tips on choosing a pension scheme.
Useful auto-enrolment blog posts from Clayton & Brewill
For updates and information on the latest changes to workplace pensions, Clayton & Brewill’s blog posts are worth a quick read.
- Are you prepared for the increase in pension contributions?
- Communicating with staff – what to do if you have workers who can’t read
- Auto-enrolment duties – changes for new employers
- Auto-enrolment – don’t miss your deadline!
- Dunelm case highlights the need to take auto-enrolment seriously
Auto-enrolment help and advice
Clayton & Brewill’s specialist payroll team can help you to work out how best to tackle auto-enrolment and guide you through the steps you need to take.
For help with pension auto-enrolment or any aspect of your payroll requirements, please email Sarah Pownall or call 0115 950 3044.