The law on workplace pensions has changed. On 1 October 2012 it became a statutory requirement for every UK employer, no matter what their size, to enrol every ‘qualifying worker’ into a workplace pension scheme – it’s called ‘auto enrolment’.
It’s a situation caused by people living longer and not making adequate provision for their retirement. Too many people are relying on just the State Pension; this is generally accepted as being insufficient for most of us to live on and, because it’s being paid for longer, is costing the government more to provide.
The new legislation aims to change that. Until now, workers have voluntarily joined a workplace pension scheme if their employer has one. Auto enrolment effectively reverses this process – now, workers will be automatically enrolled into a scheme and will have to opt out of it if, for any reason, they’d prefer not to be in one. It’s hoped the change will help millions of workers finance their own, better, retirement and reduce their reliance on the state.
Automatic enrolment is only ‘automatic’ for your staff, it is not automatic for you, their employer. Although it’s a simple concept it may be a time consuming and expensive exercise for many employers, both to set up and then administer on a long-term basis. In fact, auto enrolment could bring your organisation up to fifty new ‘actions’ and many of these are long-term, ongoing responsibilities that will need your regular attention.
It’s important to remember that auto enrolment isn’t a voluntary scheme, it’s a statutory requirement and the penalties for not fulfilling your duties as an employer are severe.
How can One Financial Solutions help you?
One Financial Solutions is here to help you. We can plan and implement everything necessary to ensure you comply with the new legislation and fulfil your legal obligations.
If you already have a workplace pension scheme we’ll review it to make sure it can be used and will recommend any changes that may be needed. If you need a new scheme we’ll find one for you and, as a truly independent firm of financial advisers, we’ll make sure the scheme we recommend is selected from the entire market and is the one that is best for both you and your staff.
More than that, if you’d like us to administer the entire scheme for you, we can do that too.
So, if you’re looking for specific help about auto enrolment or just want advice on the subject, please call us on 020 3714 9565 or ask us to call you by sending an email to firstname.lastname@example.org.