1 October 2012 may seem like a long way away, but it is a date that should be etched in the calendar of employers of all sizes. From that date, employers will begin to be obliged to automatically enrol their eligible workers into a workplace pension arrangement.
The first employers to be affected will be the largest employers (those with at least 120,00 workers) but this will relatively quickly taper down to medium-sized employers so that, by October 2013, employers with only 800 workers will be obliged to comply with the new requirements.
Some of the issues employers will need to face include:
- Associated increased costs
- The position of existing pension arrangements or schemes
- Views on different arrangements for different grades of workers
- Comparing their overall remuneration package with that of competitors
- The views of owners or shareholders
Combined with the reduction of the Annual Allowance from £255,000 to £50,000 from 6 April 2011, this makes it vital for all employers to review their pension arrangements.
Any employers ready to meet this challenge should contact Spence & Partners, whose consultants are highly qualified and proficient at providing advice and solutions to all pensions-related challenges that employers may face. Working with the employer, we will be able to construct a plan which is fit for purpose and will ensure compliance with the new requirements.