Have you communicated auto enrolment changes?
10 January 2019
The automatic enrolment duties were staged in between October 2012 and February 2018 by employer size, starting with the largest employers. Since October 2017, all businesses employing someone for the very first time have to provide a workplace pension from the first day of their service.
In 2018, the first of two planned minimum contribution increases was implemented. Before April 2018, total minimum contributions were 2% of a band of workers’ earnings, of which at least 1% came from the employer. This rose to 5% in April 2018, of which at least 2% must come from the employer.
On 6 April 2019, the amount that will need to be paid into a workplace pension will increase to an overall minimum of 8%, with employers contributing at least 3% of this.
|
Date |
Employer minimum contribution |
Staff contribution |
Total minimum contribution |
|---|---|---|---|
|
New rate: 6 April 2019 onwards |
3% |
5% |
8% |
|
Current rate: 6 April 2018 to 5 April 2019 |
2% |
3% |
5% |
The Pensions Regulator has been and is still writing to all employers to remind them of their duties, however these communications only go to the employer, not to their staff.
If you haven’t yet communicated the changes to your workforce, there are letter templates provided on TPR’s website, if you wish to use.
TPR also advises that you check with your payroll software provider and pension provider to ensure plans are in place ahead of the changes on 6 April 2019.
Further information and advice on the changes depending on what type of pension scheme you have, can be found on TPR’s website.