Auto Enrolment is part of the Pensions Act 2008. It is legally binding and covers initial plus ongoing duties every employer with workers must adhere to.
Every employer that has at least one member of staff has legal obligations, no matter the age of the business.
As soon as any employer takes on a member of staff that earns £10000.00 or more a year, they MUST take action as the clock starts ticking as soon as they start employment. This employee must be auto enrolled into a pension scheme and the correct procedures followed.
Postponement is a significant cost saving option for any new business. Postponement means that employee and employer contributions do not need to start until 3 MONTHS after the employees start date in the company. Postponement can only be selected as an option within the first 6 WEEKS of an employees start date.
Choosing a pension scheme is only a small part of the process. Choosing the correct scheme is crucial as each scheme has different charges, functionality and fund options. You are, in effect, selecting savings plans for your clients, therefore, it is very important to get this right.
Workplace Pensions Direct manage the whole of this process to ensure everything is completed correctly.