Pension contribution increases ahead
The latest increase for Automatic Enrolment
The Pensions Regulator (TPR) is reminding employers that from 6 April 2019, the amount that will need to be paid into a workplace pension will increase to an overall minimum of 8%, with employers contributing at least 3% of this total amount.
TPR is advising employers that they should also check with their payroll software provider and pension provider to ensure plans are in place ahead of 6 April 2019.
Workplace pension duties
Under the Pensions Act 2008, every employer in the UK must provide a workplace pension scheme for certain staff, and contribute towards it as part of their Automatic Enrolment responsibilities. This applies for any employer with at least one employee who meets the following criteria:
- Aged between 22 and state pension age
- And earns over £10,000 per year (or £833 per month / £192 per week)
Ongoing employer duties include:
- Monitoring the ages and earnings of your staff (including new starters) to check eligibility for pension schemes. (You must put them into a scheme and write to them within six weeks of meeting the age and earnings criteria.)
- Managing requests to join or leave your scheme
- Keeping records of how you’ve met your legal duties
- Maintaining contributions into workplace pension schemes every time you run payroll
- Re-enroling staff back into your pension scheme if they have previously left it and meet the criteria to be put back in. This needs to be done every three years and is called ‘re-enrolment’.
If you need any help meeting your automatic enrolment or payroll requirements, please get in touch with a member of our team.