Auto Enrolment & Workplace Pensions

Pension Auto Enrolment & Contribution rates.

The current plans for pensions reform consist of a package of changes to both state and private pensions. The aim is to get more people to save more for their retirement.

It started with the Pensions Act 2007 and the second stage being the Pensions Act 2008, which set out:

  • the new pension responsibilities for employers from 2012, and
  • the establishment of a new personal retirement account scheme, known as the National Employment Savings Trust (NEST)

The new reforms have clearly changed the face of the pensions industry in the UK and no doubt this will continue to change in the coming years as new legislation in enacted.

Please note information on this site is based on our current understanding of the legislation, which may change.

The Basics

Employer responsibilities under the Workplace Pensions reform are built on two principles:

  • the auto-enrolment of working individuals into a pension scheme, and
  • compulsory pension contributions by employers


Auto-enrolment means an individual is automatically enrolled into a pension scheme and does not need to do anything or make any decisions. For example, choose a fund or sign an application form.

Working individuals

The legislation defines working individuals as workers and jobholders. Employers have different duties towards their employees depending on the criteria that each employee meets.

A Qualifying Workplace Pension Scheme (QWPS)

Employers can choose to auto-enrol jobholders into a qualifying auto-enrolment private pension scheme or one of the many master trust arrangements like NEST.

Compulsory pension contributions by employers

The total minimum pension contribution that needs to be paid into a scheme is 8% of qualifying earnings, with the employer needing to contribute at least 3%. This is based on ‘Qualifying Earnings’ for 2017/2018 being at least £10,000. We can give you the latest information about UK pensions reform and advise you on your individual circumstances and of course the impact that decisions you make will have for your business going forward.

How can we help?

To find out more about how we can assist your company, please give us a call on 01423 223 640 or complete the online enquiry form and we will give you a call to discuss your requirements.

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