New workplace pension 

I sent out a newsletter on 27/1/2010 on NEST the new workplace pension scheme. This is an update for employers but employees may also be interested.

The Pensions Act 2008 came into effect in October 2012. This will force 8,800,000 employees to enrol into a workplace pension. Approximately 3,600,000 are still to be enrolled.

If you have not yet received your staging date it is only a matter of time. To find out your date you will need your PAYE scheme number and go to http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

Doing nothing is not an option as if you are not ready on your staging date you will be fined each day you are late.

It is human nature to leave everything to the last minute. The government is recommending a minimum of 12 months preparation. But in this case due to the millions of employees affected, some pension providers are asking for a 6 month minimum notice period before the staging date.

It is easy to understate the scale of the task.  But developing a strategy now will hopefully ensure that you have options going forward.

If you do not have a company scheme you will need to review the pension provider market or use the default government system NEST. 

Do you want to phase in payments from the staging date starting at 1% rising to 3% in 2018? Do you want to save National Insurance by using ‘Salary sacrifice/exchange’?
You will need to analyse your workers and categorise them into eligible jobholders. This sounds easy but you will need to manage their status every month.

Hopefully you are on top of it but if you need independent advice please contact us.


Kind regards,