Increase in automatic enrolment contributions from 6 April 2019
01 February 2019
Pension scheme rules continue to Rule and also to provide the detail necessary to help employers and scheme members understand the contributions payable, however if the scheme is being used for automatic enrolment then there are minimum contributions that must be made – from 6 April this will be a total contribution of 8% of qualifying earnings with a minimum of 3% being paid by the employer – there is no legal minimum contribution for the employee but their contribution should be sufficient to ensure that the 8% minimum contribution is achieved.
This increase marks a milestone in the many phases and stages that began in 2012 and have been necessary to roll out automatic enrolment. The Pension Regulator confirm that almost 10 million workers are now able to save more due to the successful roll out of automatic enrolment.
Automatic enrolment is hailed as been a successfully delivered policy due in no small measure to the extremely hard work of a number of payroll and pensions professionals. But this marks only the start in workplace saving, ongoing duties are just that - ongoing - and further developments will continue to be rolled out in the future.
As ever if you have any thoughts, opinions or views on this and any other policy impacting payroll and pensions administration please contact [email protected]