From next month, employers will have a duty enroll their employees in company pension schemes.
Employers have to automatically enrol workers into a workplace pension who are not already in a qualifying pension scheme, are aged 22 or over, are under State Pension age and earn more than £9,440 a year (this figure is reviewed every year), and work or usually work in the UK. Employers have to make a Minimum Contribution of 3% of the workers salary.
This obligation is being phased in over a number of years dependent upon the size of company by numbers employed.
Very Large employers (with 500 or more workers), have had to start automatically enrolling their workers since October 2012.
Large employers (with 250 -499 workers), will have to start automatically enrolling their workers in between January and February 2014
Mid sized employers (50 – 249 workers) will have to start automatically enrolling their workers between April 2014 and April 2015
Most Small employers (49 workers or less) will have to start automatically enrolling their workers between June 2015 and April 2017
Those employers who set up after April 2012 will have to start automatically enrolling their workers from May 2017 and complete it by February 2018
Employers who chose to use Defined Benefit or Hybrid Schemes can delay their staging date until 30 September 2017.