More importantly what should it mean to you? If you’re an employee, be aware that it could benefit you but if you’re running a business it’s a ‘legal duty’ to be in the know.

Business Protection

By the start of 2018, every employer with 1 member of staff, or more, needs to ensure that all ‘eligible employees’ are enrolled into a workplace pension scheme. But who is ‘eligible’? All are, other than those:

  • Who earn £10,000 + aged between 16 and 21 or are between State Pension age and 74
  • Are aged between 16 and 74 but who earn between £5,772 and £10,000 a year

Auto-enrolment is not new, with the largest employers in the UK auto-enrolling since 2012. The majority of these companies would have had dedicated pension departments and many offered a pension as part of a job’s package, making the transition to ‘auto-enrolment’ much easier. But what about micro firms and smaller companies that don’t have this sort of set up?

Auto-enrolment for these firms equates to a mild headache that could turn into a migraine if it’s left too late. Some would say it’s advisable to allow at least 12 months to prepare for its implementation. Even if you currently pay contributions into a pension scheme for your staff, you need to check if it’s suitable for auto-enrolment. If it’s not, you will need to change it. If companies have not successfully implemented a suitable scheme, by the start of 2018, then no matter what their size they will face hefty fines.

So act now and don’t let your implementation of ‘auto-enrolment’ develop into a migraine as, unfortunately, a lie down in a quiet and darkened room won’t make it go away.