Auditel Consultant:
Adrian Burton

Employers are you preparing for the Pension Changes

09 Jun 2010 | Filed under: Uncategorized

With the change of government the following could change, however as we sit today employers will have a duty to make available to the majority of employees a pension scheme by October 2012.

The duty of the employer under the National Employment Savings Trust (NEST) will be to:

Enrol all workers in a qualifying workplace pension arrangement
To select a qualifying scheme under which they can meet their duties

The employer will be required to make a minimum 3% contribution toward the selected pension scheme.

This will be an auto enrolment scheme so the employer will be expected to automatically include employees in the plan. However, employees will be given the option to move into their own personal pension plan but the employee will still be expected to contribute in this instance.

Any employer that has an existing pension plan available to all employers which is an improvement on NEST will not need to take any action.

The eligible employees under this scheme will be over 22 years of age, under state pension age and earning over £5,035 in 2006/07 terms, so the majority of most company’s workforce.

So I would encourage all businesses to start understanding your obligations under NEST and start making some plans. It will in all likelihood mean additional employee costs to businesses and possible additional administration.

If you wish to learn more of your obligations then please email me and I will arrange for a pensions expert to contact you.