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NEWS | 2012 | Confirmed new staging dates for Auto-enrolment
Confirmed new staging dates for Auto-enrolment

26 January 2012

Confirmed new staging dates for Auto-enrolment

Following a previous announcement in December, when it was confirmed that the automatic enrolment dates for all employers with less than 250 workers would be pushed back to an unspecified date, the Pension Minister, Steve Webb, has now confirmed the headline change in dates.

Mr Webb confirmed that Auto Enrolment will go ahead as planned on October 2012 and this will apply to all employers. Any employer with an existing start date before or on the 1 February 2014 will go ahead as previously planned.

The change will be for all medium size employers (between 50 and 249 employees), with re-allocated automatic enrolment dates between 1 April 2014 and 1 April 2015. This could be up to nine months later than employers’ original date. The specific date for automatic enrolment for medium-size employers has yet to be confirmed however this is expected shortly from the Government.

Small employers (with less than 50 employees) will be re-allocated automatic enrolment dates between 1 June 2015 and 1 April 2017.

In addition to the change in staging dates, Mr Webb also confirmed that the Government propose to delay the dates of the tiered increases in contribution levels by 12 months; as of 1 October 2017 all employers will be expected to contribute a minimum of 2% and this will increase up to 3% from October 2018.
Sales and Marketing Director, Murray Smith commented; “The biggest impact of auto-enrolment on most employers will be the financial cost. This will be most significant to employers who currently do not have a pension scheme or do not make pension contributions for their employees. The other main consideration for employers is to determine whether their current pension scheme will meet the criteria for a ‘qualifying workplace pension scheme’”.

If you have any further questions or would like to discuss how your business or your client’s business could be affected, please contact us.