Workplace Pensions – Are you Ready? -

Workplace Pensions – Are you Ready?


It’s a fact that people are now living longer, therefore concerns that not enough people are saving for retirement is justified.

In order to get more people saving into a pension scheme, the Government has introduced a Workplace Pension Reform which will affect all employers.

Between 2012 and 2017 employers will gradually enrol all eligible workers into workplace pensions.  Starting with larger organisations this process will be staged over a 5 year period with medium to small businesses following and the scheme being fully implemented by 2017.

Workers can opt out of the scheme if they choose but this will mean losing out on employer and government contributions.

Employers’ Duties include:

  • Ensuring that their businesses are prepared and comply with the reforms
  • Automatic enrollment for eligible workers into a qualifying pension scheme
  • Managing opt-outs for workers who choose not to join
  • Contributing to the pension scheme
  • Providing necessary and relevant information for the different categories of workers

Automatic Enrolment takes place when a worker:

  • is aged between 22 and State Pension age;
  • earns more than £9,440 per annum; and
  • works in the UK

Leaving the Scheme or Changing Jobs

If a worker leaves or changes jobs or just simply wants to opt out of the pension scheme then it is possible if automatic enrollment took place.  The workplace pension belongs to individuals so if payments cease the money will still be invested and a pension received upon reaching the scheme’s pension age.

For more detailed information or general help and advice have a look on the Department for Work and Pensions‘ website.

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