In 2012, the UK pensions landscape will change enormously when the Automatic Enrolment Workplace Pensions regulations take effect . It is estimated that more than 1 million employers will need to put in place a pension scheme for the first time.

The changes are to be phased in and it will initially be the largest companies that have to comply with them. All employers will be given a date known as a "staging date" on which they must be fully compliant with the new rules. Staging dates will start from 2012 and the staging process will continue on a gradual basis until 2016.

An employer will be obliged to automatically enrol their qualifying staff into a suitable pension scheme (a Qualifying Workplace Pension Scheme). An employee then has the option to opt out of the scheme. 

 If an employee opts out, their employer will have a legal obligation to automatically enrol them again 3 years after they were originally enrolled. The employee can continue to opt out if they wish but will have to be re-enrolled on a 3 yearly basis.

Contribution rates will gradually increase over time so that by the end of 2017 the full required level of contributions will be payable.  Typically, an employer may expect a make a contribution equivalent to at least 3% of an employee's qualifying earnings. The employee will have to contribute 4% of qualifying earnings with the tax relief received on their own contribution.

For further details please click on the links below and watch the video on the right.

RHG are based in Stevenage, Hertfordshire and are experts in this field, and we are here to help you through this difficult process.

Compulsory Workplace Pensions      

Employer Responsibilities and Penalties     

j&rgonfreebenefits        

Ensuring Compliance

Frequently Asked Questions