In October 2012, the ground-breaking automatic pensions
enrolment legislation began to come into effect. Under the
legislation, all employers will have to make arrangements for their
workers in the UK to be automatically enrolled into a pension
scheme. The intention is to increase the level of pension saving in
the UK, and it means that, for the first time, employers are
required to contribute towards the pension saving of their
workers.
The legislation is being phased in over time, with the largest
employers being required to comply first. Automatic enrolment will
be in force for all employers with more than 50 workers by April
2015 and it is important for employers to start planning - if they
have not already done so - as to how to implement the new
requirements. Even employers with existing pension schemes may need
to amend their schemes to be compliant, and employment
documentation and HR processes will need to be reviewed.
