New Rules For Pension Schemes

Employers face a possible 3% hike in employment costs!

The Pensions Regulator has published information about proposed workplace pension changes which are due to be phased in from next year.

Workers who will need to enrol in the new workplace pension arrangements are:

  • Employees who earn more than the minimum earnings threshold, and
  • Are aged between 22 and state pension age, and
  • Work in the UK.

Each employer will be given a date from which changes will have to be in place. This will be known as your staging date. Larger employers will have the earliest staging dates. The process will begin October 2012 and continues through to 2016.

Readers may find the following notes useful:

  • Find out what your likely staging date will be at www.tpr.gov.uk/staging
  • You will be required to contribute at least 3% of worker’s earnings.
  • Workers will be required to make a contribution such that the minimum, combined contribution is 8%.
  • Workers will qualify for tax relief on their contributions.
  • Existing pension arrangements may qualify; you will need to check with your pensions advisor.

More general information on the changes is available at www.dwp.gov.uk/policy/pensions-reform.

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