If you’re an employer, you’re going to have to auto enrol your workforce into a suitable workplace pension scheme.
We’ve already helped a number of UK companies prepare for auto enrolment and we’ve gathered together a few of the most commonly asked questions.
Under the rules of auto enrolment you’ll be required to:
As you can see, there’s a lot to do. The good news is we can guide you through the process.
Our WorkSave Pension Plan is suitable for auto enrolment and we’ve developed online tools that might help you with some of the tasks.
We’ve also produced a series of guides that explain auto enrolment in more detail.
Once you’ve successfully set up your workplace pension scheme and enrolled your employees, your automatic enrolment duties don’t stop there. Learn more about your ongoing responsibilities.
Both you and your employees, if they’re eligible and wish to remain in a pension arrangement, are required to make contributions, subject to certain minimums based on the employee’s earnings.
These minimum amounts will increase over time and are shown in the table below.
|October 2012 to September 2017||1%||1%|
|October 2017 to September 2018||2%||3%|
|October 2018 onwards||3%||5%|
For more details, go to ‘Make contributions’ in our ‘What do I have to do?’ section.
The cost of providing standard scheme administration is borne by your employees.
Typically, this cost is met through two separate charges, both of which are based on a percentage of the member’s fund value:
All employees will be automatically enrolled into our default investment strategy, which is the Legal & General Multi-Asset Fund and will be charged a 0.5% a year of their fund value in total.
Once enrolled into our WorkSave Pension Plan, members will have the option to change their investment fund. If they do so, the charge might be more than 0.5% of their fund value.
The largest companies have already started the enrolment process. Those that remain will be given a deadline - called a staging date - between now and February 2018, based on the number of people they employ.
The Pensions Regulator will write to you 12 months before and again three months before your deadline to confirm the ‘staging’ date for your business.
If you haven’t already received notification from them, we’ve included a link to The Pensions Regulator website, so that you can check for yourself.
Although your staging date is your deadline for auto enrolment, you still have some flexibility over the actual implementation date.
You can move it forward, if you want to. For example, a number of employers have brought their staging date forward to bring it into line with a more appropriate point in their financial year.
You can’t put your staging date back, but you can postpone the date on which you automatically enrol your employees by up to three months.
For more details, go to ‘Confirming your staging date’ in our ‘When do I have to do it?’ section.
Providing it complies with the requirements, there's no reason why you can't use an existing company pension scheme for auto enrolment.
As long as it's registered with HM Revenue & Customs for UK tax purposes, the requirements are fairly straightforward.
For more information on what these requirements are, go to 'Provide a suitable company pension' in our 'What do I have to do?' section. Alternatively, if you'd like to find out about these requirements in more detail, take a look at The Pensions Regulator website.
There’s a lot to do. So the sooner you start the better.
We’ve produced a project timeline template, that can help you identify all the tasks you’ll need to complete and when.
All you need to do is enter your staging date, and the timeline will work it all out for you.
Once you’ve completed the initial set up process, we’ll send you a link to the template and you can start planning what you need to do and when.
Don't worry, we can provide you with everything you need to auto enrol your workforce.
We've developed a dedicated website which contains all the information you'll need to know about auto enrolment, including a series of guides that explain everything in more detail.