Group Pension Auto Enrolment
Preparing businesses for the biggest change to UK pensions legislation.
With automatic pension enrolment (auto-enrolment), employers have now been put under the spotlight to ensure that they are properly looking after their staff once they reach retirement age. The auto-enrolment pension legislation means that all UK employers now have a responsibility to ensure they offer their staff the chance to save for their retirement, and that can seem like a daunting process for many businesses.
Setting up an auto-enrolment scheme is not an easy process. All businesses, no matter the number of employees, will need to ensure that their plans abide by the auto-enrolment rules – and with The Pensions Regulator's guidance running to 250 pages, it can be quite a daunting process.
The Lark Employee Benefits team can help audit a current scheme or provide guidance to a business when they are looking to set up their auto-enrolment scheme. As each employer is different, care needs to be taken to ensure that the scheme being set up is right for the organisation and its staff.
No matter the business size, Lark are on hand to help craft a made to measure auto-enrolment pension solution.
By law, every employer has to enrol into a workplace pension any worker who fulfils the following cireteria:
are not already in a qualifying workplace pension scheme;
are aged 22 or over;
are under State Pension age;
earn more than a minimum amount (£10,000 a year, £833 a month, £192 a week in 2015-16);
and work or usually work in the UK.
The aim is to help ensure that people don't have to rely on their State Pension when they retire. The State Pension is a foundation for your retirement but for many it may not be enough, so the government wants individuals to save more during their working life.
The government is getting employers to enroll their workers automatically into a pension at work so it is easier for people to start saving. Employees can opt out if they want.
Both the employee and employer will pay into it.