Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it. Also known as, “auto enrolment pension service”, it applies if you employ at least one person.
Our experience shows the work involved in setting up a new auto enrolment scheme (or changing an existing scheme) should not be underestimated. Its affects payroll too, so it is vital the processes (and systems) work together.
From 6 April 2019, the minimum your employer has to contribute increased to 3% of your salary (within certain limits detailed below), up from 2% previously. At the same time, the minimum total enrolment contribution rose to 8% (that’s the total you and your employer together must put in).
Most workers in the UK are automatically enrolled into a workplace pension scheme by their employers. From the date they’re automatically enrolled they have a month to ‘opt out’ Workers and employers can both contribute to Nest to build a retirement pot that’s invested on behalf of the worker.