The New Pensions Act – Are you Prepared?

Posted on 01 July 2011 by Noreen Munro

New pension regulations are to be phased in from October 2012.

All employers will be required to offer a qualifying workplace pension scheme and automatically enrol eligible employees.

Eligible employees are aged between 22 & 75 and earning between £5035 and £33540 per annum (based upon current pay levels).

At least 8% of the employee's qualifying earnings must be paid into the pension scheme and be made up of the following minimum contributions:

  • Employee 4%
  • Employer 3%
  • Tax Relief 1%

As an employer, it is your responsibility to ensure that your payroll and HR systems can cope with the additional burden. If you outsource your payroll then your payroll service provider will be able to advise you further.

Now is the time to start implementing changes.

More information is available on the DWP website.

The full act is available here.

Legislation

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