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ARTICLE · 08 JUNE 2010

Pensions Reform – Time To Start Planning

Withers LLP
Withers LLP
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The Pensions Act 2008 put in place a framework for the next stage of the government's pensions reforms which takes the form of an ‘auto-enrolment' scheme for pensions, with mandatory employer contributions, beginning in October 2012.

United KingdomEmployment and HR

The Pensions Act 2008 put in place a framework for the next stage of the government's pensions reforms which takes the form of an 'auto-enrolment' scheme for pensions, with mandatory employer contributions, beginning in October 2012. Regulations setting out the detailed requirements for employers have now been published and will start coming into force in July this year.

What will employers have to contribute?

The new regulations mean that employers will have a duty to arrange for eligible jobholders to be automatically enrolled into pension schemes. The rules will be introduced in stages, over six years, with larger employers being required to comply with them first. Overall, employers will be required to pay contributions of 1% of a jobholder's qualifying earnings in the first four years, rising to 2% in the fifth year and the full 3% from the sixth year onwards. Employers will need to bear in mind these new obligations and the costs connected with them when

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