Many companies are of the misconception that if their employees do not wish to contribute to a Qualifying Workplace Pension Scheme, they are not required to set one up for Auto-Enrolment and can notify the Pension’s Regulator of their decision.
However, new legislation states that it is compulsory for ALL employers to provide their employees with a qualifying workplace pension scheme, therefore you must have a pension in place ready to auto-enrol all eligible employees by your staging date.
The Pension’s Regulator will want to see, as part of your Declaration of Compliance, that you have provided your workforce with a Pension Scheme, you have automatically enrolled eligible workers into it and offered it to both non-eligible and entitled workers.
Should any employees not wish to contribute to the pension you have provided, then it is their right to opt out and it is an employers’ duty to show them how to do this.
For any advice or to arrange a free consultation to discuss auto-enrolment contact Tax Expert today.