Automatic enrolment (AE) has changed the UK workplace forever. It is a major reform that will bring millions of people into employer-sponsored pension schemes and will require employers, and most employees, to save into a pension scheme.
The date employers must start to enrol employees is determined by the number of employees on the organisation’s tax record at 1 April 2012. Employers set up since April 2012 will be required to start enrolling from May 2017. The Pensions Regulator will write to every employer, twelve months and three months before that employer’s start date.
So far, more than five million employees have been automatically enrolled under the new legislation, but from 1 June 2015, it will be the turn of businesses with fewer than 50 employees to start enrolling staff into a workplace pension scheme, and it’s important these employers know what is required of them by law.
In tomorrow’s instalment of our auto-enrolment series, we find out what SMEs can learn from big business…