Glasgow, United Kingdom (PressExposure) July 15, 2011 -- Whether you have one employee or one thousand and whether you have a pension plan in place already or not, you need to prepare for the pension changes that are coming. The new employer duties are being introduced in stages, starting with the very largest employers in October 2012 and gradually being rolled out to cover all employers by September 2016.
Between 2012 and 2016, employers will have new duties to:
automatically include most of their staff in a qualifying pension scheme; and
make payments to their chosen scheme(s) on behalf of employees.
You can use your own pension scheme, the new national pension plan NEST (National Employment Savings Trust) or both to meet your new obligations.
Whichever option you do decide, your chosen pension scheme has to meet all of the following key criteria:
Provide at least the minimum prescribed pension payments.
Allow employees to be auto-enrolled as members.
Offer a default investment fund so that the employee does not have to make a choice about where the payments are invested.
The introduction of the new employer duties means that you need to take action - doing nothing is not an option. A little planning now can help you decide how to implement the changes and manage the impact on your company. 2012 may seem a long way away, but now is the time to start planning for it, as the new employer responsibilities will impact on your business.
At Heather Macqueen Ltd we can guide you through the process and the new legislation which is still evolving so any reference to tax and legislation is based on our understanding of law and HM Revenue & Customs practice at March 2011 and current proposed legislation. Tax and legislation are liable to change in the future.