The Government has released the revised timetable for auto-enrolment pension roll out.
The timetable was revised due to concerns that the impact of the scheme could be too much for some businesses to take in the current environment.
Large employers with 250 or more employees will be the first to face the change, with the original start date of October 2012.
The next group will be those with between 50 and 249 members who will have from 1 April 2014 until 1 April 2015 to implement the changes. Then a test tranche for those with 30 or less staff will take place throughout June 2012 before becoming compulsory from 1 January 2016.
Businesses with between 30 and 49 employees will be expected to comply with the rules from 1 August 2015. Commenting, minister for pensions Steve Webb said: “Automatic enrolment will begin on time this October, taking up to 10 million people into pension saving, many for the first time ever, and all employers will be part of it.
“We have done all we can to ease any burden on business the reforms will bring and employers of all sizes now know the date they need to start enrolling their staff.”
But some claim the delays are disappointing. Charity director at Age UK, Michelle Mitchell said: “We were disappointed that the original timetable for the introduction of auto-enrolment was delayed but at least now there is a clear schedule to allow employers and employees to plan for the future and a firm commitment not to exempt small businesses.
“The timetable must not be allowed to slip further and the government must now encourage employers to start putting arrangements in place.”
According to the Association of British Insurers (ABI), around half of workers are currently not paying into a pension or not saving enough, so auto-enrolment will give many people the much needed ‘nudge’ to save for retirement and break the ‘savings stalemate’.
We could help your business to prepare for auto-enrolment. Please contact us to find out more.
