Automatic Enrolment and Workplace Pensions
What is it?
In a word, complicated!
Workplace pensions involves the compulsory Auto Enrolment of all eligible staff in a qualifying pension scheme, and compulsory contributions from both the employer and employee.
The process started in October 2012 for the very largest employers and is being phased in for ALL employers between 2012 and 2018.
Individual employees can choose to opt out of the scheme but will be automatically re-enrolled regularly.
Different ‘tiers’ provide options for employers in the level of contributions that must be paid. This choice can impact significantly on the overall cost for an employer.
