Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/sites/westwaters.co.uk/public_html/framework/lib/sddb.class.php on line 166 Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/sites/westwaters.co.uk/public_html/framework/lib/sddb.class.php on line 166
Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/sites/westwaters.co.uk/public_html/framework/lib/sddb.class.php on line 166 Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/sites/westwaters.co.uk/public_html/framework/lib/sddb.class.php on line 166It is widely accepted that people are living longer and not saving for their retirement. This will put an even bigger strain on the existing State pension system.
To alleviate this burden, the Pensions Acts 2007 and 2008 made changes to the Basic State Pension, the State Second Pension and introduce a new employer duties for pensions.
The Pensions Act 2008 laid out the foundations for automatic enrolment however when the new coalition Government came into power, a review group was set up to examine automatic enrolment. This group presented its recommendations to the Department for Work and Pensions (DWP) in October 2010. The original proposals are shown with recommended changes and implications highlighted.
From October 2012, employers will be required by law to:
The administration may prove onerous coupled with compliance requirements that could create issues for employers.
There will be financial penalties for non compliance
The employer duties will be staged over 5 years from October 2012. Larger employers will have their duties imposed first, smaller employers last. Any employer with less than 50 employees will have their staging date set depending on the last two digits of their PAYE reference number.
Size of Employer | Staging Date |
120,000 – 800 | Over 12 dates from 1st October 2012 to 1st October 2013 |
799 – 250 | Over 3 dates from 1st November 2013 to 1st February 2014 |
Less than 30 | On 1st June 2015 to 30th June 2015 |
249 - 50 | Over 4 dates from 1st April 2014 to 1st April 2015 |
49 - 30 | Over 1st August 2015 to 1st October 2015 |
Less than 30 | Over 18 dates from 1st January 2016 to 1st April 2017 |
New businesses with first PAYE income payable from 1 April 2012 | Over 7 dates from 1st April 2017 to 1st February 2018 |
All employees will have to be auto-enrolled unless:
Employees can only ‘opt-out’ once they have been auto-enrolled.
Non-eligible employees must be given the option of opting in to pension saving.
Workers who earn between the lower qualifying earnings limit (£5,715 in 2010/2011 terms) and the income tax threshold (£7,475 in 2011/2012 terms) should be allowed to opt in and receive an employer contribution.
If you would like more information about the pension auto enrolment, please do not hesitate to come in for a free initial meeting and we can talk you through every detail.
Contact us today to arrange your meeting with John Galley to discuss your requirements.
How can we help?
We are a proactive firm of accountants who can assist you in all your financial needs in a friendly, efficient and professional manner.
Building partnerships, listening to your needs, and implementing a solid financial strategy is the backbone of our practice.
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