Plan Now For New Workplace Pension Duties
Employers should start planning for the new workplace pension duties which are due to come in and will affect small and medium sized businesses in the coming months.
This has come from the fact that medium sized companies (employing 60 or fewer people) were becoming subject to auto enrolment. The first small and micro employers will need to be ready this summer. The new law means that both employers and staff will pay into the workplace pension’s scheme. The scheme is set to come in to encourage millions of individuals aged 16 – 74 to save for their retirement.
Recent figures show that only 1 in 3 private sector workers were in a pension scheme in 2012 and the trend has been downwards for the last 40 years.
All employers have a staging date which is set in the law and is when the duties will come into force for their business. So by starting now, employers can ensure to give themselves plenty of time to put plans in place for auto enrolment. Large firms started auto enrolment three years ago.
It has been advised to start planning 12 months before the staging date.
Source: Dorset Business April 2015