What it will mean for you as an employer?
This is a summary of an article kindly provided by Russell Brennan of True Bearing Ltd for the guidance of employers. To read the full article please click on the link at the end on this summary.
- Comes into effect from October 2012
- Employer must auto-enrol all employees into a Qualifying Workplace Pension Scheme (QWPS)
- Over 22 years but below state pension age
- Earning ££7475 or more in 2011/12
- Within 3 months of commencing employment
- Employees can opt in earlier if they wish
- Employer & employee must jointly contribute a minimum of 8% of Qualifying Earnings into the scheme
- Employer must contribute at least 3%
- The employee can opt out within 30 days of enrolment, but the employer must not encourage or suggest this course
- The requirements including the minimum contributions will be phased in between October 2012 and October 2017
We think you should have this information in good time as it has a direct bearing on your costs of employment.