If you are unsure you should check your scheme documents or speak to your pension scheme provider.
2. Work out which staff it applies to.
You need to make the increases in contributions for ALL staff who you had to put into a pension scheme and which you pay into, including any new staff you put into this scheme. The increases do not apply to staff who asked to be put into a scheme that you don’t have to pay into. 3. Make sure the way you calculate contributions and pay them to the pension scheme is ready to apply these increases from 6 April 2018. If you use a payroll provider or payroll bureau you should speak to them to check everything is in place to process the increases If you pay your staff yourself using payroll software, you must make sure it is set up to process the increases If you are unsure what to do speak to the software provider If you use your own process to pay your staff, you will need to ensure the increases are implemented If you use HMRC basic payroll tools you will need to put in place a process to ensure the increases are implemented.
You can use the Regulator’s online contributions calculator to help work out your costs for each member of staff.
4. Depending on what you have already agreed with your pension scheme, they may also be making the necessary changes to process the increases and may contact you nearer the time to tell you what is happening and what you need to do.
Telling your staff about the increases You should let your staff know about the increases. TPR has an example letter template you can amend.
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Automatic enrolment review is considering removing the lower age limit 4 October 2017
According to a report by the Daily Telegraph , workers as young as 16 will be enrolled into company pensions for the first time following the Department for Work and Pensions (DWP) automatic enrolment review.
The report states:
“The Department for Work and Pensions will use a major review of its flagship pension scheme to create a new culture of teenage pension saving in Britain, sources said.
At present employers are legally obliged to automatically enrol workers over the age of 22 into pensions, while younger workers have no pension rights and are often excluded.
But the removal of the lower age limit would see hundreds of thousands of young tradesmen, retail workers and some apprentices enrolled into company schemes.”
CIPP comment The main focus of the automatic enrolment review is to ensure that automatic enrolment continues to meet the needs of individual savers. The existing coverage of the policy is being looked at and the needs of those not currently benefiting from automatic enrolment; for example employees with multiple jobs who do not meet the criteria for automatic enrolment in any of their jobs. Also under examination are the automatic enrolment thresholds namely, the trigger and the qualifying earning bands required by legislation (Section 14 of the Pensions Act 2008) and the age criteria for automatic enrolment. The review is also being used to consider how the growing group of self-employed people can be helped to save for their retirement. The official results of the review are expected before the end of 2017.
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The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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