Auto Enrolment.

AUTO ENROLMENT – HOW WILL IT AFFECT YOU?

Here’s some information you may find useful to prepare for the changes due to take place in 2012.

WHAT IS AUTO ENROLMENT AND WHY IS IT HAPPENING?

Auto enrolment is where an eligible employee is automatically enrolled into their company pension. From October 2012 it will be a legal requirement for UK employers to do this.

Many people don’t currently save enough for retirement or take advantage of company pension schemes that may be offered to them. As a population we’re living longer and have an increasing proportion of people at retirement age compared to working age. Auto enrolment is part of a Government initiative to increase private retirement savings.

WHAT ARE THE PLANS?

Auto enrolment will begin in October 2012 and will be introduced in stages with larger employers starting first. By September 2016 all employers will be expected to auto enrol their eligible employees into a qualifying scheme.

WHAT DOES IT MEAN FOR MY CLIENTS?

From October 2012 to September 2016, depending on the size of the company, clients will have to auto enrol all eligible employees into a qualifying pension scheme.

Minimum contributions for employees and employers will be phased. By October 2017 onwards the minimum contribution will be 8%, of which at least 3% must come from the employer.

HOW CAN I PREPARE FOR THE CHANGE?

Work with your clients to determine when the rules will affect them and help them prepare.

OUR SUPPORT FOR THE CHANGE.

We can help provide you with the necessary information your clients will need. Contact us for further information.

All information is correct as at 27 October 2010 but is subject to change.