Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Manchester 0844 800 8346

Pall Mall Court
61-67 King Street
Manchester M2 4PD

Send us a message
Our Offices

Delayed Automatic Pension Enrolment for Small Firms

8th December, 2011

As you may be aware, the Pensions Act 2008 introduced a number of notable changes to the UK’s pension regime. Undoubtedly, one the most far reaching is the compulsion on employers to automatically enrol their employees into a pension scheme.  This will involve employers using their own qualifying scheme or a government established scheme (NEST) and making minimum pension contributions for auto-enrolled employees.

Ultimately, employers will be obliged to contribute at least 3% of the employee’s earnings.  Total contributions paid by the employee and the employer must be at least 8% of the employee’s earnings.

Mandatory employer contributions will be phased in over six years.  Broadly, employers will be required to pay contributions of 1% of an employee’s earnings in the first four years, rising to 2% in the fifth year and the full 3% from the sixth year onwards.

This week it was announced by Steve Webb, Pensions Minister, that firms with fewer than 50 employees will be given more time before they must start enrolling staff into such pension schemes.

The starting deadline for small firms has moved from April 2014 to May 2015.  The aim is to help the smaller firms save money and to give those employers additional time to impose the compulsory scheme.

Up to 9 million employees will be affected by automatic enrolment and of those, 44% of employees will see their enrolment delayed (Department for Work and Pensions).

If you are considering amending your contracts of employment and/or employee handbook to comply with these changes, please contact Helen Watson in our employment team for further information.

 

You might also be interested in...

Legal expert’s data protection workshops pull in the crowds

22nd May, 2018

With the General Data Protection Regulation (GDPR) coming into force in May, businesses across Shropshire have been flocking to hear more about the new laws Paul Bennett, a partner at law firm Aaron & Partners LLP, has been delivering seminars in partnership with the Shropshire Chamber of Commerce An employment solicitor from Shrewsbury is urging businesses across the... Read More »

Experienced HR leader joins Aaron & Partners LLP

15th May, 2018

Experienced HR leader joins Aaron & Partners LLP Law firm with offices in Chester and Shrewsbury appoints Kate Robertson to drive HR strategy for more than 120 staff and to support the company’s growth Chester law firm Aaron & Partners LLP has strengthened its senior leadership team with the appointment of an experienced human resources manager. Kate Robertson... Read More »

When you should NOT pay the bailiff…

24th April, 2018

Jan Chillery, Insolvency Partner at Aaron & Partners LLP, shares her experience and the reasons why we should be cautious before paying so-called “bailiffs” over the phone or online without vetting them first. My neighbour has told me that recently he had a CCJ (County Court Judgment) against him. A day or so later, he received a phone call... Read More »

Contact Us