Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. If you employ at least one person you are an employer and you have certain legal duties that you must abide by.
If you employ any employees who meet the criteria for auto enrolment, then they must be enrolled into a pension scheme by the companies staging date. A Declaration of Compliance must be submitted to The Pensions Regulator as evidence that you have met your auto enrolment duties. Failure to do this may result in significant fines for the company.
The employer must monitor the ages and earnings of employees and enrol any employee as soon as they become eligible or if they choose to be enrolled. Requests to leave the scheme must also be monitored and acted upon. Records of all actions relating to the auto enrolment process must be kept by the employer for six years.
Re-enrolment occurs every three years. The employer must re-enrol any employee who has left the scheme and who meets the criteria. The employer must submit a Re-declaration of Compliance to show that they have complied with their re-enrolment duties.
If you would like to know more about Auto enrolment then please follow the link below: http://www.thepensionsregulator.gov.uk/en/employers, or contact Sharon Roden via email or by calling 01772 821 021.
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