Pensions Reform - Auto-enrolment

From October 2012 to 2016 every employer will need to operate a pension scheme which every eligible employee will need to enrol in to.

Eligible employees are:

Employees who are aged between 22 and the state pension age.
Earn above the personal allowance - currently £7,475 for 2011/12

Contributions will be made on earnings between £5,035 - £33,540.

The employer needs to contribute 3% and the employee will pay 4% with a further 1% paid as tax relief by the government. This total of 8% can be phased in between 2012 and 2017.

There is a 3 month waiting period before an employer is required to enrol an employee although the employee may opt in sooner if they wish. Once enrolled and partcipating the employee has the right to opt out.

To find out your phasing date click here: http://www.pensionsadvisoryservice.org.uk/media/386546/phased%20implementation%20dates%20-%20dwp%20version.pdf

More information available at http://www.thepensionsregulator.gov.uk/index.aspx