New automatic pension enrolment timetable
It will now be October 2018 before minimum compulsory employer contributions to workplace pensions are fully phased in. Previously, this was supposed to happen by October 2017. Implementation dates vary depending on the number of employees a company has under PAYE. Very large employers will be the first affected (from 1st October 2012) while the ‘staging dates’ for those with less than 50 employees for example will start during the course of 2015, with later implementation dates as employee numbers decrease.
Employees must be automatically enrolled into a pension scheme and employers must make minimum pension contributions for those aged between 22 and the state pension age who earn at least £8,105 a year. Once enrolled, employees can opt out.
Eventually, the automatic level of contributions must be at least 8% of the individual's "qualifying earnings". This includes 3% that must come from the employer.
The BFM is in the process of finalising an industry-wide arrangement for the furniture industry with a scheme provider which will greatly ease the administrative burden for employers and prove less expensive that the National Employment Savings Trust fall-back scheme. Further details will be announced in the middle of this year.
For staging dates...
For minimum contributions....