Are you ready for the new employer pension duties?

Last month detailed guidance was released by the Pensions Regulator about preparing for the new employer pension duties, which is available at http://www.thepensionsregulator.gov.uk/press/pn11-10.aspx.

In brief the duties provide for employers to:

• automatically enrol certain workers into a pension scheme
• make contributions on behalf of their workers
• register with the Pensions Regulator
• communicate certain information to their workers

When will the employer pension duties come into affect?

The new employer duties will be introduced in stages over 4 years from 2012. Each employer will be allocated a date from which the duties will first apply to them, known as the staging date. The staging date will be based on the number of people in an employee’s PAYE scheme. Employers with the largest number of workers in their PAYE schemes will have the earliest date. Employers can check the provisional staging date from which the duties will first apply to them at the Pensions Regulator’s website.

At this stage, employers should look up their provisional staging date. This will enable employers to plan when they might need a pension scheme in place and take action if necessary. It will also enable employers to appropriately budget for any changes.

For more employment law advice or to comment on this article please contact us to speak to one of our employment law specialists.