April 28, 2016

Pension Auto-enrolment

We can setup your pension for a fixed fee of just £250

The law on workplace pensions has changed. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it, this is pension auto enrolment.

Does automatic enrolment apply to you?

Being an employer, it is your responsibility to work out if you fall within automatic enrolment criteria.

If you have a staff who is being paid via PAYE scheme then automatic enrolment duties apply.

Staging Date - Due date for automatic enrolment

Staging date is the date when your automatic enrolment duties come into effect. To check you staging date, click here.

staging dates for employers who set up after 1 April 2012


The minimum contribution

The minimum contributions that you must pay into your staff’s pension scheme are shown in the table below – they’re currently a total contribution of 2% with at least 1% employer contribution.
*The proposed dates are subject to Parliament approval

Pension auto enrolment

When should an employer start planning?

You should ideally start planning well before the staging date to make sure you assess the available options and choose the one that suits your needs the best. Often auto-enrolment can be left until it’s too late and companies may struggle to find a provider able to accommodate them at very short notice.

How to select a pension scheme?

Selection of the most suitable pension scheme would involve a few questions, it is possible for an employer to choose a pension provider. However, services from an expert financial advisor could be considered to make sure you are choosing the right option which is always not the obvious one. A few questions to consider could be:

  • Are communication costs covered?
  • Is there a set up fee applied to small employers?
  • Do they have simple requirements and on-boarding process?
  • Are members presented with a series of complex investment choices?

Make sure the scheme you are choosing is auto-enrolment compliant.

Scheme contributions

Initially the minimum contribution of 1% from both employees and employers, they have option to increase the contributions. Over time the minimum employer contribution will increase to 2% and eventually 3%.


*The proposed dates are subject to Parliament approval


Payroll integration - Why is it important?

It is very important that all pension data updates go to pension provider without any delays and in standard formats to avoid any discrepancy. There are several payroll platforms that offer integration with pension providers, that helps in submitting data to pension provider in parallel to your payroll run and avoids delays. 

What we do:

Ok-528 SETUP pension auto-enrolment

Ok-528 ANALYSE different options to find the best for you

Ok-528 INTEGRATE payroll with the pension provider

Ok-528 Take care of all your COMMUNICATION DUTIES

Ok-528 GUIDE YOU on your responsibilities being an employer