Pensions – Automatic Enrolment

advertisement

Automatic enrolment into a workplace pension scheme started on 1st October 2012.

However, it is important to note that enrolment will be phased-in over a number of years, depending upon the size of the employer.

Under the scheme employers will have to provide a proper workplace pension scheme and employees will be automatically enrolled into the pension scheme, if they are not already in a proper qualifying scheme.

A qualifying scheme is one of the following:

- A defined contribution scheme with a minimum contribution, or
- A defined benefit or hybrid scheme, which meets certain conditions.

 

Employees who qualify for automatic enrolment

Employers will have to enrol an employee where:

- They are not already in a qualifying pension scheme
- They are aged between 16 and 74
- Has gross earnings of or likely to have gross earnings over £9,440 per year*
- Work ordinarily in the UK, and
- The employer deducts Income Tax and National Insurance contributions from their wages or salary

* The gross earnings figure is subject to annual change.

However, workers who do not meet these criteria can still request that their employer enrols them. If the employer receives such a request they must enrol the employee.

Automatic enrolment into a recognised employer pension scheme is being introduced because of the significant number of workers in the UK who have made insufficient or no pension provision.

Employees in a PAYE scheme are defined by the number of employees in your scheme on 1 April 2012. This can also include those in a PAYE scheme who no longer work, as they are already retired.

 

Auto Enrolment Staging Dates

Auto enrolment is being introduced in stages according to the number of qualifying employees, (those in a PAYE scheme) an employer has:

1 October 2012
Employers with 120,000 or more employees in their PAYE scheme must provide auto-enrolment.

50,000-119,999 - 1 November 2012

30,000-49,999 - 1 January 2013

20,000-29,999 - 1 February 2013

10,000-19,999 - 1 March 2013

6,000-9,999 - 1 April 2013

4,100-5,999 - 1 May 2013

4,000-4,099 - 1 June 2013

3,000-3,999 - 1 July 2013

2,000-2,999 - 1 August 2013

1,250-1,999 - 1 September 2013

800-1,249 - 1 October 2013

500-799 - 1 November 2013

350-499 - 1 January 2014

250-349 - 1 February 2014

160-249 - 1 April 2014

90-159 - 1 May 2014

62-89 - 1 July 2014

61 - 1 August 2014

60 - 1 October 2014

59 - 1 November 2014

58 - 1 January 2015

54-57 - 1 March 2015

50-53 - 1 April 2015

1 June 2015
Fewer than 30 employees with the last 2 characters in their PAYE reference numbers 92, A1-A9, B1-B9, AA-AZ, BA-BW, M1-M9, MA-MZ, Z1-Z9, ZA-ZZ , 0A-0Z, 1A-1Z or 2A-2Z

1 July 2015
Fewer than 30 employees with the last 2 characters in their PAYE reference number BX

1 August 2015 - 40-49

1 September 2015
Fewer than 30 employees with the last 2 characters in their PAYE reference number BY

1 October 2015 - 30-39

1 November 2015
Fewer than 30 employees with the last 2 characters in their PAYE reference number BZ

1 January 2016
Fewer than 30 employees with the last 2 characters in their PAYE reference numbers 02-04, C1-C9, D1-D9, CA-CZ or DA-DZ

1 February 2016
Fewer than 30 employees with the last 2 characters in their PAYE reference numbers 00 05-07, E1-E9 or EA-EZ

1 March 2016
Fewer than 30 employees with the last 2 characters in their PAYE reference numbers 01, 08-11, F1-F9, G1-G9, FA-FZ or GA-GZ

1 April 2016
Fewer than 30 employees with the last 2 characters in their PAYE reference numbers 12-16, 3A-3Z, H1-H9 or HA-HZ

1 May 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers I1-I9 or IA-IZ

1 June 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers 17-22, 4A-4Z, J1-J9 or JA-JZ

1 July 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers 23-29, 5A-5Z, K1-K9 or KA-KZ

1 August 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers 30-37, 6A-6Z, L1-L9 or LA-LZ

1 September 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers N1-N9 or NA-NZ

1 October 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers 38-46, 7A-7Z, O1-O9 or OA-OZ

1 November 2016
Fewer than 30 with the last 2 characters in their PAYE reference numbers 47-57, 8A-8Z, Q1-Q9, R1-R9, S1-S9, T1-T9, QA-QZ, RA-RZ, SA-SZ or TA-TZ

1 January 2017
Fewer than 30 with the last 2 characters in their PAYE reference numbers 58-69, 9A-9Z, U1-U9, V1-V9, W1-W9, UA-UZ, VA-VZ or WA-WZ

1 February 2017
Fewer than 30 with the last 2 characters in their PAYE reference numbers 70-83, X1-X9, Y1-Y9, XA-XZ or YA-YZ

1 March 2017
Fewer than 30 with the last 2 characters in their PAYE reference numbers P1-P9 or PA-PZ

1 April 2017
Fewer than 30 with the last 2 characters in their PAYE reference numbers 84-91, 93-99

1 April 2017
Fewer than 30 unless otherwise described

1 April 2017
Employer who does not have a PAYE scheme

1 May 2017
New employer (PAYE income first payable between 1 April 2012 and 31 March 2013)

1 July 2017
New employer (PAYE income first payable between 1 April 2013 and 31 March 2014)

1 August 2017
New employer (PAYE income first payable between 1 April 2014 and 31 March 2015)

1 October 2017
New employer (PAYE income first payable between 1 April 2015 and 31 December 2015)

1 November 2017
New employer (PAYE income first payable between 1 January 2016 and 30 September 2016)

1 January 2018
New employer (PAYE income first payable between 1 October 2016 and 30 June 2017)

1 February 2018
New employer (PAYE income first payable between 1 July 2017 and 30 September 2017)

External links
www.thepensionsregulator.gov.uk

Guide to auto enrolment for employers

Auto enrolment staging dates

advertisement