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Auto Enrolment for Employers

Helping companies make workplace pensions more accessible to the masses by offering auto enorlment.

Employer Responsibilities

Often referred to as the National Employment Savings Trust (NEST), an employer is obliged to auto enrol employees into the workplace pension scheme within six weeks of qualification. This may be within six weeks of starting employment or when from the date they qualify/opt in to the scheme. Prior to auto enrolment, the employee must be given all the relevant documentation so they are aware of the financial benefits and risks.

The workplace auto enrolment pension scheme, the employee has one month from the date of enrolment to let their employer know they wish to drop out. Their decision must be confirmed with the appropriate documentation. This document should be retained by the employer to show this was the employee’s decision.

For more information on our other services, check out our Pensions Advice page or Inheritance Tax Planning page.

An employer has a range of responsibilities which include:-
Providing workplace pension scheme administrators with information about eligible employees
Retaining all records relating to employee enrolment
Paying the necessary contributions per employee
Arrange for employee contributions to be paid into the pension scheme
Ensure that tax relief is added to all pension scheme contributions where relevant
Maintain record of all contributions made by the employer and the employee
Assured Private Wealth can offer advice and guidance to employers faced with auto enrolment responsibilities under the government regulations. Failure to uphold legal responsibilities may find employers facing legal action and potential fines, not to mention compensation to employees.

Auto Enrolment Thresholds

The auto enrolment thresholds for a workplace pension scheme are as follows:-

Eligible for a state pension

Annual earnings of more than £10,000

Aged between 22 and state pension age

Those earning from £6240-£10,000 per annum, and aged between 16 and 74, will not be auto enrolled into a workplace pension scheme. However, they have the right to opt in. Under current legislation, they will also qualify for the minimum level of employer contributions towards their pension fund. The minimum level of employer contribution is currently 3%, with employees traditionally paying 4% and a 1% tax rebate from the government, which equates to a total contribution of 8% of an employee’s gross salary.

Pension Auto Enrolment FAQs

Can an employer get auto enrolment advice?

Assured Private Wealth can offer advice and guidance to employers faced with auto enrolment responsibilities under the government regulations. Failure to uphold legal responsibilities may find employers facing legal action and potential fines, not to mention compensation to employees.

How much does an employer have to pay into an employee's pension scheme?

Under current regulations, an employer is obliged to contribute at least 3% of an employee’s gross salary to the individual’s pension pot. Some employers will choose to make payments above the legal minimum as a means of attracting and retaining skilled employees.

What can I do if my employer refuses to enrol me in the workplace pension scheme?

The legal obligations of employers are fairly clear and concise. Failure to auto enrol an eligible employee, or persuade them to opt out, is illegal and the employer could face repercussions. If you find yourself in such a situation, and your employer refuses to discuss the situation, you should contact the Pensions Regulator.

How does auto enrolment work?

Since the introduction of auto enrolment workplace pensions in 2012, the emphasis has been on automatic enrolment for qualifying employees. This ensures that eligible employees are not put off by often complicated paperwork - this is all done automatically on their behalf. Should an employee wish to opt out, this is their right but they will need to demonstrate they were not coerced or forced into this decision by their employer. The workplace pension scheme will be managed and administered by regulated third parties.

Does automatic enrolment apply to those who are self-employed?

No. There is no obligation for self-employed individuals to set up a workplace pension scheme although they are advised to consider their options to maximise income in retirement.
I was happy with the service and correspondence between Paul and myself, he was very professional throughout the process. Paul supplied all the information required, following our telephone conversations.
Judy C
Professional and friendly service from experienced people to help you make the right choices and complete the important paperwork.
Tim P

Want to know more?

Call us for a friendly chat on 02380 661 166 or email: info@apw-ifa.co.uk

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