In an attempt to encourage a culture of savings and preparation for retirement the government has introduced the pension auto-enrolment reforms.
The reforms have already taken effect for the largest employers and month by month over the next four years employers of all sizes will become subject to the scheme.
Auto-Enrolment means that all eligible employees (depending on age and income) will need to be enrolled on a qualifying pension scheme automatically. If the employee does not wish to enrol on the scheme then they must opt out of it themselves by getting in contact with the pension provider.
Employers are prevented from encouraging employees to opt out of the pension in any way, for example, by offering the employee an inducement of any kind in return for opting out.
There will be a minimum level of contribution to the pension scheme which will increase periodically as follows:
The rest of the contributions will be made up by a combination of employee contributions and tax relief.
Even if an employee opts out of the scheme the employer is required to re-enrol them after 3 years and the employee must then opt out again.
What you need to do:
HMRC have confirmed that auto-enrolment can be implemented in combination with a pension salary sacrifice scheme that will assist employers absorb some of the costs and can save employees money as well.
For more information on auto-enrolment and salary sacrifice call us on 0114 241 7092.
By James Murphy
If you don't have Microsoft Office, or Microsoft Word installed on your PC or Mac, don't worry - you can still use our products. You can get a free alternative from Open Office.
Open Office Org is open-source developed alternative to Microsoft Office, developed by a large software company called Oracle. Open Source means the company who build the software, allow 100% use of it, 100% free.
Since Open Office is specifically developed to be exactly the same as Microsoft Office, with all the same programs in the suite (Eg: Word, Excel, Access and Power Point) - it will freely open any Microsoft Office file-format. Meaning, just because a document was written in Microsoft Word, doesn't mean it can't be opened in another program. Open Office will do that, and vise versa.
To download and install Open Office;