Auto enrolment; are you aware of the changes being introduced in April 2018?

Unless you’ve been trekking across the Sahara with a herd of donkeys for the last 12 months, you’ll must have seen or heard one of the many communications the Pensions Regulator has devised to alert businesses – of all sizes – to their responsibilities to enrolling their employees into a pension scheme.

Under automatic enrolment, minimum pension contributions are required to increase over time. This happens on set dates, and is a key feature of automatic enrolment that should be incorporated into your pension offerings. (Source: The Pensions Regulator).

In speaking to many businesses recently, it seems they are just getting around to their legal responsibilities of auto enrolling. This is good; however, many were not aware that these minimum contributions being paid into automatic enrolment workplace pension scheme are increasing. You’ll also hear this referred to as phasing. These phasing increases come into effect in April 2018 and it is up to each and every respective business to ensure these increases are implemented.

“….this is good; however, many were not aware that these minimum contributions being paid into automatic enrolment workplace pension scheme are increasing.”

What you need to know:

• From 6 April 2018, the increase will take the total minimum contribution from 2% of qualifying earnings to 5% of qualifying earnings (of which the employer must contribute at least 2% of qualifying earnings whilst employees make up the difference of 3%).
  
  

Next steps:
These legal pension contributions will happen immediately, without you taking any further action, however, at Volarti, we’d recommend communicating with your staff on the changes; after all they will directly benefit. You don’t have to do it, of course, but it would be our recommendation if a programme of workshops and written updates were issued.

If you have an intranet, put a communication out on that or if you have a staff newsletter, this too can be used. Maybe you could have a staff forum to address the staff; Volarti would be delighted and available to be your objective, subject matter expert on the subject. 

About Volarti:
Volarti is a professional company supplying important services to start-up and small businesses, helping ambitious owners to grow and develop. We tailor your requirements to your needs. Whether this is a long term or one-off job we have a flexible approach. We are proud to guide business and industry on:

• Accountancy & Bookkeeping
• Administration & Company Secretarial
• Marketing and Commercial Services
• Payroll

 
To find out more, please call 07872 186146 or email: michelle@volarti.co.uk