Your questions answered
The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including putting those who meet certain criteria into a workplace pension scheme and contributing towards it.
This is called automatic enrolment. It’s called this because it’s automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme. But it’s not automatic for you. You need to take steps to make sure they’re enrolled.
If you employ at least one member of staff, you’ll need to automatically enrol them into a pension scheme if they meet certain criteria. To find out more, read the essential guide to automatic enrolment.
Each employer has a date by which they need to comply with the law. This is called your staging date. You must set up a workplace pension scheme before your staging date, if you don’t already offer one. Find out yours now using the staging date tool.
There are a number of tasks that will need to be completed by your staging date, including assessing your workforce to see who’s eligible, choosing a pension scheme, and communicating to staff. To help you prepare use the automatic enrolment action planner to find out what you need to do and by when.
You need to tell us who’ll be responsible for managing the automatic enrolment process by nominating a contact. Over the coming months, we’ll send help and guidance to this person.
If you already have a workplace pension scheme, check if you can use it for automatic enrolment. If your existing scheme is not compliant you can use TRUST|Pensions as a new scheme, or transfer your existing scheme to TRUST|Pensions. If you run your own pension scheme you must keep its assets separate from your business assets.
You must enrol all workers who: • are aged between 22 and the State Pension age • earn at least £10,000 a year • work in the UK You must make an employer’s contribution to the pension scheme for those workers.
You’ll need to provide us with information about your employees to enrol them. As a minimum, for each of your employees you’ll need their: • name • address • date of birth • National Insurance number • Email address
You must pay any pension contributions you take from your employees into your staff pension scheme by our agreed date. This date must be no later than the 22nd day (19th if you pay by cheque) of the following month.
The law on workplace pensions has changed to make it easier for millions more people to build up a pension, particularly those on lower incomes.
Automatic enrolment means that, rather than having to actively choose to join a pension scheme, workers are put into one by their employer as a matter of course. If they don’t want to be in the pension scheme, they must actively choose to opt out. It’s to encourage people to stay in pension saving.
For a start you can use these posters around the workplace to raise awareness. Once your firm has joined Strawberry Pension, in association with TRUST|Pensions, we can do the rest.
The Pensions Regulator
Staging dates (20 mins)
Who is a worker? (25 mins)
Pensions Management Institute
For advisers and professionals looking to obtain a nationally recognise d qualification, the Certificate in Pensions Automatic Enrolment from the Pensions Management Institute could be for you. This qualification is designed to meet the needs of those who are advising or implementing the requirements of automatic enrolment. It provides an overview of employer requirements and obligations associated with automatic enrolment and an understanding of its practical effective implementation. See PMI Certificate in Pensions Automatic Enrolment for additional information.