Business News

February 2011

Employers Offered Guidance on Pension Changes

Employers are being offered extra help to get to grips with new responsibilities under workplace pensions reform.

As part of its work to maximise compliance with new employer duties to automatically enrol eligible staff into workplace pension schemes, the Pensions Regulator has issued a new edition of a leaflet explaining work-based pension schemes.

This will be followed by a set of detailed guides aimed at audiences including large employers in spring 2011.

Further new content will be produced in the summer for small and micro employers, providing easy-to-use tools covering the key points of what employers will need to do, when they need to do it and the processes involved.

Later in the year the regulator will publish details of its compliance and enforcement strategy, setting out how it intends to maximise compliance with the new employer duties and the circumstances in which it might be expected to use its powers.

Between October 2012 and September 2016 employers will be required to automatically enrol all their eligible jobholders into a qualifying pension scheme and make a minimum contribution of a jobholder's qualifying earnings into the scheme.

Milsted Langdon partner Steve Horton said: “There is no immediate rush for companies to take action but many are taking the opportunity to plan now for the dramatic changes to the rules that lie ahead and could put enormous burdens on SMEs that aren't prepared."

LINK: Guidance for employers

LINK: Milsted Langdon Financial Services