Are you ready for the pension reforms coming in 2012? As an employer are you in charge of your company’s destiny or will you be complying with the new regulations by default?
All employers in the UK, other than single-person companies, will need to take action to comply with their new responsibilities under pension reform.
Employers will have to automatically enrol all their eligible jobholders, aged between 22 and state pension age, earning between £5,035 & £33,500 and not already members of a ‘good’ quality scheme, into an existing ‘qualifying’ workplace scheme or the new personal accounts scheme, ‘Nests’.
Jobholders can opt out of the pension scheme if they want to, BUT if they choose to stay in it, the employer will have to pay a pension contribution of at least 3% of the jobholders ‘qualifying earnings’ into either the qualifying scheme or the personal accounts scheme.
Jobholders will also have to contribute at least 5% of qualifying earnings (including 1% tax relief), bringing the total contribution to personal accounts to 8% of qualifying earnings.
This may be phased in over a three year period but the time to act is now, if as an employer you wish to take control of your company’s finances and the care and benefits of your people.
The rules and regulations on this subject are detailed and complex so you need the best professional advice possible, for the details of ‘qualifying income’ and for a fact sheet on the responsibility’s you as an employer will have feel free to contact David direct; the time to act is now.