Under the Pensions Act 2008, the minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase as planned.
Does this apply to me?
If you have put your staff into a pensiom scheme for automatic enrolment you will need to make sure that at least the required minimum amount is paid by you and your staff into the scheme. If you don't have any staff in an automatic enrolment pension then you do not need to take any further action to implement these increases.
When do I need to make the increase?
You must increase the minimum contributions from 6th April 2019. All employers must take action to make sure at least the minimum amounts are being paid into their automatic enrolment pension schemes.
What are the increases?
The table below shows the minimum contributions that most employers pay the dates when they must increase:
|Date effective||Employer minimum Contribution||Staff contribution||Total minimum contribution|
|Currently to 5 April 2019||2%||3%||5%|
|6th April 2019 onwards||3%||5%||8%|
You may have agreed with your pension provider to calculate minimum contributions in a different way. If this is the case you will need to apply different increases. To find out what these increases are got to: www.tpr.gov.uk/certified
What do I need to do?
From 6th April 2019, the way you calculate and pay contributions into your pension scheme must have been changed to reflect these increases. Your pension provider, and if you use one, your payroll software or payroll provider, may be in touch about these changes before they come into effect. You should also let your staff know about any increases being applied to their contributions.
If you are already paying above the increased minimum amounts, you do not need to take any further action.
What if I don't have any staff in a pension scheme?
You still need to asses anyone who works for you each time you pay them and put them into a pension scheme if they meet the criteria for automatic enrolment. For more information fo to www.tpr.gov.uk/ongoing
For more information on anything in this blog then please get in touch on 02392 640746 or go to www.tpr.gov.uk
All information on this blog has been taken from www.tpr.gov.uk and complilled into an easy to read blog.