Employers must automatically enrol certain members of their workforce into a pension scheme and will need to make a contribution towards it.
The law came into force for large employers on 1st October 2012 with small and medium-sized businesses following in stages from spring next year.
Even if an employer already offers pension arrangements for their workers, they still have some new obligations to meet.
The main things that an employer must do are:
- provide a qualifying scheme for workers
- automatically enrol all eligible jobholders onto the scheme
- pay employer contribution for eligible jobholders to the scheme
- tell all eligible jobholders that they have been automatically enrolled and that they have the right to opt out if they want to do so
- register with the Pension Regulator and give them details of the qualifying scheme and the number of people that have automatically enrolled.
Go to the Pensions Regulator website for more detailed information.