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Bambury and Co

Changes to Auto-Enrolment

 

The “Duties Start date”….

The grace period is over – if someone works for you, you are a micro-employer, and if you pay them more than a certain amount, you must set up a workplace pension scheme.

Auto-enrolment went live on 1 October 2012 and requires all employers to automatically enrol eligible workers into a workplace pension scheme where both the worker and their employer pay some money in.  To date, more then 8.5 million people have enrolled, many of whom will never have saved in a pension before.

Up until now, employers have typically been given advance notice of the date when their auto-enrolment duties came into effect. This was known as their “staging date” and gave people time to get their ducks in a row. Previously, many employers received a letter about auto-enrolment from The Pensions Regulator as long as a year before their staging date.

But on 1 October 2017 the “duties start date” took effect, and no more staging dates are being issued.  Instead, anyone who starts up a new business will have a legal duty to put any eligible employee straight into a workplace pension as soon as they employ him or her.

If you employ someone and haven’t set up a scheme yet you really need to consider what your duties are and Bambury & Co are here to help – you can contact us on 01869 222830 or enquiries@bambury.info.

Minimum Contribution increases to come into effect this April

The minimum auto-enrolment pension contributions are set to increase this coming April and again in April 2019.  Employers will be required to take steps to prepare for the increase in minimum contributions towards their employee’s pension pots.

The total minimum contribution will increase from 2% to 5% where employers must contribute a minimum of 2% and employees must contribute the remaining 3%. Minimum contributions will increase again in April 2019 from 5% to 8%, where employers must contribute 3% and employees the balance of 5%.

Employers can choose to pay the full 5% in April 2018 and 8% in April 2019. In these cases, the employee will not need to pay any contributions unless the rules of the pension scheme say otherwise.

Already got a scheme but finding it a headache to run?

You have better things to do than worry about the auto-enrolment legislation – so why not hand everything over to us?

If you have already set a scheme up but are finding it a hassle to keep on top of things, why not let us take the headache away and look after it for you? If you want to talk more about this please contact us on 01869 222830 or enquiries@bambury.info .

 

 

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