Businesses employing between 30 and 49 people will not have to enrol their staff in a compulsory pension scheme until August 2015. Those employing fewer than 30 can wait until January 2016.
After that date compulsory pension enrolment will apply to all employers regardless of their size.
Employers will be obliged to automatically enrol practically all workers into a company pension scheme and make regular contributions on behalf of their employees. The pensions schemes will have to be registered with the Pensions Regulator and workers will have to be provided with regular updates on pension performance.
All workers aged between 22 and the State Pension Age who earn more than £7,475 p.a. will have to be enrolled and there will be a minimum contribution of 8% of an employee’s earnings made up of 4% from the employer, 3% from the member of staff and 1% from the government.
For those companies that do not have their own scheme the National Employment Savings Trust [NEST] will provide one.
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