Workplace pensions
information for employers

Millions of people in the UK are not saving enough for their retirement and many are not saving anything at all. This is putting an enormous burden on the State. To encourage people to save more, the Government has decided to introduce a requirement for all employees to be automatically enrolled into a workplace pension by their employers. All employers will have to pay contributions and employees will have to contribute as well.

Many employers will find the new obligations to encourage more pension saving by their employees somewhat daunting and just another thing to increase the cost of employment and to divert resources from their core business.

Cheviot’s aim is to help employers provide excellent pensions for their staff and meet the requirements as easily as possible. We have been providing pensions since 1930 so have lots of experience and are ready to help with all the elements required for workplace pensions and auto enrolment from working out how much it will cost to providing information for employees.

Here are the key points:

• The Government is introducing a new requirement on employers to provide access to a workplace pension and to make contributions to it for most employees.
• The requirements started being phased in from October 2012 for the largest employers. The date the requirement affects your business is called your “Staging Date”.
• Employers need to check whether their current scheme will comply with the new requirements or introduce a scheme if they don’t currently provide one.
• Employers need to identify those employees who need to be auto enrolled and decide how to structure the contributions. Contributions will start at 1% of pay for both employee and employer but will increase to 8% in total by 2018 with the employer paying a minimum of 3%.
• Payroll systems will need to cope with the auto enrolment of employees and the deduction of contributions.
• Employers will need to keep all the necessary records.

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