Pension Auto-enrolment is coming...

Thursday, 3rd March 2011 20:07 - by Resident IFA

A big shake-up to Pensions provision is coming in the next 1 to 4 years. What is it? Auto-enrolment and N.E.S.T. Auto-enrolment is mandatory. A company will have to enrol its employees in a ‘Qualifying’ Pension Scheme, paying a minimum of 3% alongside an employee contribution of 4% (1% of this being tax relief). N.E.S.T. is the Government’s offer a Qualifying Pension Scheme. This is an option, not mandatory. An existing employer Pension could be, or could be amended to be, perfectly adequate. Otherwise, there is the option to set up a new scheme i.e. a Group Personal Pension (GPP). This could be news to you. I hope not. If it is pretty scary to you as an employer, the thing to do is get as much knowledge of the impending changes as possible. Auto-enrolment is being phased-in; the larger companies the first to participate. The link below might be of help. This shows when your company will be liable to start Auto-enrolment. Simply input the last 2 digits of your company PAYE reference and, hey presto, it provides a pretty accurate date. I tried it for my business and we are looking at November 2015 or thereabouts. http://www.thepensionstrust.org.uk/surveys/stagingdatetool.aspx This date will roll around quicker than I might think. As always, the ‘early adopters’ will suffer less as they are more prepared and planning for the changes. A good time to call your IFA? Quite possibly! Until next time...