Workplace Pension Reform And Automatic Enrolment - Pensions In 30 Podcasts, Episode Three

Key Points

Anyone who employs workers in the UK will have to comply with new employer duties with effect from their 'staging date'; An employer's 'staging date' is set out in legislation and falls between 1 October 2012 and 1 February 2018 depending on how many people work for the employer; Employer duties are to: assess and categorise their workers; automatically enrol any workers who meet the criteria to be 'eligible jobholders'; and are not members of a 'qualifying scheme' into an 'automatic enrolment scheme';

issue communications to all workers including certain prescribed information; process opt-in and opt-out requests; pay contributions for jobholders in pension savings in line with statutory minima; and provide The Pensions Regulator with a confirmation of how they have complied with their duties. Main Sources

Pensions Act 2008 The Employers' Duties (Registration and Compliance) Regulations 2010, SI 2010/5 The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010, SI 2010/772 The Pensions Regulator's (TPR) detailed guidance: TPR detailed guidance Employers' obligations

The Pensions Act 2008 obliges employers to automatically enrol certain workers into a pension scheme that meets statutory requirements. This includes ensuring that the pension scheme provides a minimum level of pension contributions or a minimum level of benefits. Employers must also provide certain prescribed information to all of their workers.

Employers will have to administer a re-enrolment process every three years, administer and process opt-out notices and pay refunds. They will also be required to keep records and register with The Pensions Regulator. Finally, employers will be obliged to adhere to certain safeguards to ensure compliance.

When does automatic enrolment start?

Employers are subject to employer duties with effect from their staging dates.

Employers were allocated a staging date based on the size of their PAYE scheme as at 1 April 2012. Newer employers are given a staging date based on when they first start paying PAYE income. The last staging date is 1 February 2018. From this date onwards, employer duties will apply to all employers.

To find out an employer's staging date you can visit TPR's staging date calculator.

Categorisation of workforce

Automatic enrolment affects groups of employees and workers in different ways. It is vital for employers to undertake a thorough assessment of the workforce to establish who...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT