The government’s latest pension laws
The government’s latest pension laws are aptly titled auto enrolment. In basic terms, anyone over the age of 22; who earns more than £8,105 per annum; and ordinarily works in the UK will be automatically enrolled onto a workplace pension scheme at some point between October this year and 2018. You can get help integrating this into your business at http://www.nowpensions.com.
Those with small businesses may be suffering from the most anxiety due to the need for consultancy fees and the implementation of new payroll procedures. They should rightly seek the best advice and be prepared for when their time comes which may be toward the end of the phasing in (2017/2018). Big business will be the first to incur the changes that the legislation demands.
Latest Pension Laws Affects All Businesses
Companies with between 50 and 249 employees need to implement the scheme between 2014 and 2015; businesses with 30 to 49 workers, will be included by the end of 2015; finally those with fewer than 30 workers are scheduled to be full incorporated by 1 April 2017 although these guidelines will be subject to change as governments come and go.
Forward thinking businesses should try and steal the lead on their competitors by seeking advice on which pension schemes may offer best fit for their business. NEST (a government approved pension provider) will be on hand to offer a large amount of new policies, but some companies may seek to satisfy their pension provisions through occupational or stakeholder schemes.
Latest Pension Laws Allow Bigger Contributions
For any businesses worried that their finances may be ravaged by pension contributions, that needn’t be the case. Minimum contributions from the employer will be set at 1% in 2012, matched by the employees 1% contribution, this rises to just 3% in 2017 (with the employee paying in 5%). Some more conscientious employers may wish to make bigger contributions in order to attract better staff and promote productivity and loyalty.
The Latest Pension Laws will insist that all businesses large or small will need to provide some kind of pension provision whether through NEST or any private alternative that meets the minimum criteria.