"Government automatic enrolment scheme will see 9 million more people save into a workplace pension."
The "Auto Enrolment Workplace pensions law" has changed. You will have heard on the news that we are to see the biggest change in pensions for 100 years come into force. These will affect every employer giving them new legal duties to help their employees in the UK save for their retirement. They must automatically enrol certain employees into a "qualifying workplace pension scheme" and make contributions towards it.
Many employees in the UK have not taken up pension benefits available to them. The Government believes that is because employees do not make an application to join their employer's scheme. Automatic enrolment is meant to overcome this by aiming to encourage greater private pension saving, particularly amongst those on low or moderate incomes.
The government has introduced this new law demanding all employers automatically enroll their employees into a "qualifying workplace scheme" if they are not already in one.
Employers must ensure that they provide a "qualifying scheme" and automatically enrol all their eligible employees into the scheme from the date the law is 'switched on' for their business, starting with large employers. ‘Switch on’ date for ubu will be 1st October 2013. This may seem a long way off, however there is much to do to ensure that ubu and all employees are prepared for that date.
Make sure you keep a keen eye open for all updates on "Auto Enrolment". Don’t miss how THIS MAY affect you.