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Workplace pensions – what it means to you

I-Corporate Services Limited

Now here’s the rub and it may come as a surprise to you but we are all living longer. Not only that but the problem is that successive governments haven’t saved enough of the tax we have paid to provide for the time when we want to put our feet up and take it easy!

Of course, the lucky ones of you out there have been prudent enough to make provisions for retirement but there are millions of people who haven’t and consequently the government have introduced automatic enrollment into workplace pensions to try and solve the problem.

So, once you are automatically enrolled into a workplace pension, you, your employer and the government will pay into it unless you decide to “opt out”.

So as an employee you’ll have your own pension as well as a state pension for when you retire.

What if I’m an employer? Here are a few answers to frequently asked questions regarding auto enrolment:

When is it happening?

The new employer duties are being introduced in stages starting with the largest employers who began in October 2012. The date your duties apply is known as your staging date and it’s based on the number of people in your largest Pay As You Earn (PAYE) scheme on 1 April 2012.

What is the effect on my workforce?

You’ll need to assess your workforce to determine whether your employees are classified as a ‘worker’ under the new legislation. There are three different categories of worker, determined by their age and how much they earn.

What are my employer duties?

Your employer duties will depend on the types of worker you employ. You’ll need to automatically enrol some workers into a pension scheme and arrange membership for others. You’re also responsible for the ongoing maintenance of the scheme and have an obligation to keep certain records.

What is the effect on pension schemes?

You must register that you have an automatic enrolment scheme in place with The Pensions Regulator (TPR) within four months of your staging date. You’ll also have to re-register roughly every three years. If you have an existing scheme in place the good news is you can use it to meet your employer duties, so long as it meets certain criteria.

What records do I need to keep?

You’ll need to keep records of how you’ve met and continue to meet your employer duties. This includes information about your workers and the pension scheme which must be provided to TPR when requested.


This may seem rather daunting; however, at i-Corporate Services we have developed a cost effective service to help you plan for auto enrolment.

Contact Geoff Newman, Director, on 01582 715777 for more information.

I-Corporate Services Limited

Geoff Newman
About Geoff Newman (35 Articles)
Helping you to plan your future, financially for peace of mind