Workplace pensions: what you need to know
At Rickard Keen, we understand that to best achieve your business aims, you need to know in advance about changes to legislation that will affect you. That is why we are highlighting forthcoming modifications to the regulations regarding pensions for your employees.
What is happening?
For the first time, all employers will be required to automatically enrol eligible employees into a qualifying workplace pension scheme and make minimum contributions to that scheme.
This includes all employees who:
- Earn more than £7,475 per annum
- Are between the ages of 22 and state pension age
With 85 percent of a typical UK employer’s expenses being staff-related, any increase in staff costs is likely to have a marked effect on your profits.
When will I need to comply?
These requirements will be phased in over four years, starting with the largest companies in October 2012. However, these firms will be able to start auto-enrolling employees from July 2012 to avoid extra administration during the busy Christmas period.
During the introductory phase, the contribution level will be set at two percent, increasing to a minimum of five percent and eight percent in 2016 and 2017 respectively.
What must I do now?
Therefore, all employers need to ensure they offer a qualifying pension scheme ahead of their compliance time and plan for the resultant financial impact. The government offers a default pension scheme, the National Employment Savings Trust (NEST) if you do not want to organise your own.
How can Rickard Keen help?
Rickard Keen Financial Services – a joint venture between Rickard Keen and independent financial planning consultants French & Associates – has the expertise to provide impartial advice on any current pension scheme your company offers, and whether it complies with the forthcoming legislation.
By taking action now, we can also help minimise the financial impact of the forthcoming changes on your business.
To discuss any of the issues raised, please contact us:
|
