The pensions landscape has undergone a major renaissance over the past few years with one of the most notable changes - the auto-enrolment law - requiring all UK employers to offer a workplace pension scheme and automatically enrol all eligible workers by April 2018.And with contribution levels set to increase in April 2019, we’re here to ensure your firm remains compliant and up to date each step of the way.
What is automatic enrolment?
Automatic enrolment is a workplace pension process which has seen all UK employers automatically enrol their staff into a company pension scheme if they meet some basic criteria. Staff have the option of opting out of these workplace pensions but must be auto enrolled first. It is the responsibility of the employer to complete the entire process for staff.
What are the current contribution levels?
If you're aged between 22 and state pension age and earn at least £10,000 from one job, you will be automatically enrolled in your company’s pension scheme, unless you actively chose to opt-out.
There are minimum contribution levels that both you and your employer must pay - the Government will then add to your pot by giving you tax relief on your contributions
The current contribution levels, which were set in April 2019, are:
- Employer 3%
- Employee 4%
- Government 1%