Auto-enrolment was introduced in October 2012. The legislation states every employer in the UK must have a workplace pension scheme in place.
Employers will need to enrol their workers into the scheme and make contributions on their behalf.
Why is it happening?
Put simply, to increase private savings for retirement. With people now living longer than ever before, this means they will enjoy a longer retirement. However, people are either not saving for it or not saving enough to provide them with the security they require. Auto enrolment has been designed to bridge this funding gap and encourage people to think more about how they will fund their retirement.
What happens if I don’t automatically enrol my staff?
The Pensions Regulator is responsible for ensuring every employer is compliant with auto-enrolment laws. As an employer, you will first be told to put things right. Failure to do so may lead to fines from £50 to £10,000 per day and could end in criminal prosecution. This is why it is important to make sure you are aware of what auto enrolment is and you know exactly what you need to do before your staging date to make sure you are compliant with the upcoming auto enrolment laws.
Some forms of Auto Enrolment are not regulated by the FCA.
How can we help?
If you would like to discuss your auto enrolment requirements please complete the online enquiry form and we will give you a call to discuss your requirements.