Are You Ready For The Government Pension Fund Changes ? !

One of the biggest changes in pension funding is to be introduced by the Government which will mean that starting from October 2012, every employer will have to offer every employee earning over £8,105 and aged between 22 and State Pension Age access to a pension arrangement.

This is called auto enrolment and there will be a staged approach with the largest employers starting in October 2012. You can discover when your company will have to start pension provision by visiting www.tpr.gov.uk/pensions-reform.

As an employer, you will ultimately be required to contribute 3% of qualifying earnings between £5,564 and £42,475 and your employee will have to contribute 4% which together with tax relief of 1% will make a total of 8%. These amounts are being phased in over a four year period.

It is important to understand your obligations and duties as an employer to avoid being fined or charged penalties.

If you have an existing pension scheme it may be that this can be used to meet your obligations. If it doesn’t or you do not have a scheme then you will need to decide how best to meet the requirements of auto enrolment.

If you would like a free copy of our guide to Pension Reform then please email Phil Illingworth of PWM Wealth Management Ltd on phil@pwmltd.com or call me on 01829 771707

 

Comments are closed.