Overview
Rob Davies, Director at EFG Independent Financial Advisers, considers what should now be the final rules for automatic enrolment and offers a suggested outline action plan for HR.
- Employers of all sizes must automatically enrol all eligible jobholders into a qualifying pension scheme and pay contributions that at least meet minimum amounts.
- Employers will be gradually ‘staged in’ to the automatic enrolment duties, starting with the very largest employers in October 2012.
- There is a new national workplace pension scheme called NEST (the National Employment Savings Trust). NEST will be a qualifying pension scheme (as will be suitably designed private pension schemes) and will be open to any employer who wants to use it, either for some or of all of their eligible jobholders.
- An eligible jobholder is a worker who is aged between 22 and state pension age, working, or ordinarily working, in the UK, has qualifying earnings payable by the employer in the relevant pay reference period that are above the earnings trigger for automatic enrolment (£8,105 for 2012-13).
- Automatic enrolment does not apply if the eligible jobholder is already an active member of a qualifying scheme with the employer.
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