Firms urged to prepare for pensions auto-enrolment
16 May 2014
As the phased introduction of pensions auto-enrolment continues, recent research has suggested that more than 80% of employers are facing increased costs as a result of the new regime.
Auto-enrolment is being phased in over a number of years, and will require most UK employers to automatically enrol eligible workers into a qualifying pension scheme and to pay a minimum contribution into the fund.
The research suggests that while some of the increased costs are accounted for by employer contributions, preparing data and dealing with administration are also proving to be significant cost factors.
Employers must adopt auto-enrolment with effect from their allocated ‘staging date’. Further information on staging dates can be viewed here: www.thepensionsregulator.gov.uk/staging.
Businesses are being encouraged to ensure that they prepare for auto-enrolment in good time.