2012 will not only be a landmark year in the UK with the arrival of the summer Olympics. From October of that year, all employers will be faced with a raft of new employer duties connected to pension reform.
Included in those duties is, for the first time in the history of UK pensions, the requirement for employers to automatically enrol millions of eligible employees in to a qualifying workplace pension scheme (QWPS).
This is a major change to UK pensions. The Government has estimated that some 7 million people are either not saving enough or not saving at all for their retirement. To deliver their aims, the Government is placing the onus on employers to help in encouraging more people to save.
And don
Great, as if the cost and red tape of employing people wan't enough for small businesses to bear. Haven't seen this, but assume there is a caveat for small businesses? Think current one is if over 5 employee's, then you need to offer pension advice, is it this thats changing, or is it any number of employees?
Yes, this will be another burden for smaller business and organisations like charities who have both suffered in recent times. Is 2012 set in stone? I would imagine it was conceived pre-recession. bjn bjn
I'll post up additions to further advise. From the way I see it, if you have just one employee then you will be afflicted,,affected not afflicted...then again. Mike Automatic Enrolment – now and after 2012 The Government’s pension reforms will introduce numerous new pension rules from 2012. Prime amongst them is the necessity for an employer to contribute to a pension for their employees for the first time and also the introduction of automatic enrolment. What does automatic enrolment actually mean? Auto-enrolment (as it will be more commonly known) means that employees will be a member of their employer’s pension scheme unless they actively decide to opt-out. So those that choose to do nothing will stay as members. Additionally, people who opt-out will have to be re-enrolled every three years. Auto-enrolment is likely to significantly increase membership of pension schemes. Can I use automatic enrolment before 2012? It depends on what type of pension scheme you have. If the scheme is an occupational pension scheme, then you are able to auto-enrol employees before 2012. However, if the scheme is what as known as a contract-based scheme – such as a group personal pension, group stakeholder pension or group self invested personal pension – then you can’t. This is because of two European directives. The Distance Marketing Directive and the Unfair Commercial Practices Directive are there to protect customers from being misled into signing up for financial services contracts without being given the opportunity to fully consider the contract terms first. After discussions with the EU, the Government believes automatic enrolment in contract-based schemes is consistent with EU law from 2012 onwards. The new interpretation recognises the difference between an employer sponsored scheme to which the employer contributes (workplace personal pensions) and individual personal pensions which have no employer involvement. The automatic enrolment process from 2012 The Government's pension reform changes will start to be implemented from October 2012. New regulations confirm when employers will need to automatically enrol workers into a qualifying pension scheme - which depends on their size. The tables below show the exact date (known as the ‘staging date') by which employers must fulfil their responsibilities. The employer must enrol all qualifying workers - broadly those between age 22 and state pension age who earn above bonsai passion
I might be onto a winner here, since my business idea is centred around providing admin support for businesses who - for whatever reason - do not want actual PAYE permanent employees. Although I will of course be stuffed if my business becomes such a success that I need to take on staff myself... VirtuallyMary
Its interesting, with the amount of red tape floating around when taking on employee's, it's a wonder anyone still does. So after you take on Matilda who is 18 and full of attitude, (because respect and discipline have disapeared from the school classroom), train her up at your expense, (having to teach her basic office etiquette and common sense), she clears off at 19 to have her first sprog, but you have to keep her job open. She comes back, (part time), then gets up the duff again. Comes back again, then claims back all her missed holiday while away on maternity, you then have to give her pension contributions  ahh good old UK PLC  Maybe we could recruit people over 60/65? Do you still have to pay pension contributions then I wonder? |
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