Automatic enrolment – Pensions regulations

Some of you would have already received letters from the Pensions Regulator on automatic enrolment of employees onto employer pension scheme. The legislation basically states that every employer with at least one member of staff must automatically enrol those who are eligible into a workplace pension scheme and contribute towards it.

This is a huge administrative burden and will require due care with respect to implementation as the fines are very high.

However, if there are only directors on the payroll then you fall out of the automatic enrolment legislation and do not have to put in place the workplace pension and have the administrative burden that goes with it.

Similar Posts