Pension Auto-Enrolment is legislation from the Government and is now underway and is obligatory for all companies with 30 employees or less by 2016.
The aim of auto-enrolment is to encourage employees to start saving in their own personal pension and over the next few years businesses within the UK has to offer a workplace pension to their staff or face penalties.
With the cost to employers ranging from £0 to many thousands of pounds, pension providers that provide clear and low cost solutions will be in demand from small businesses. With over 1 million small companies yet to enroll, it’s going to be a busy time for the industry.
At present, auto-enrolment only applies to larger companies with staff of 59 to 250+, but from January 2014 companies with 30 to 58 employees will need to register and by 2016 those with 30 or less employees will be required to register.
Auto-enrolment does not apply to Sole Traders.