Workplace Pension Reforms

legal updates

From 1 October 2012 the largest companies will be required to enrol into a pension qualifying scheme.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

The provision of pensions in the future is something that is on the mind of many employers.

Small employers need not be overly concerned at this stage.   It is the intention of the Pensions Regulator to write to employers both at 12 months and 3 months before enrolment in the scheme as necessary. 

From 1 October 2012 the largest companies (120,000 in PAYE scheme) will be required to enrol into a pension qualifying scheme being either a private occupational defined benefit or defined contribution pension scheme, group personal or stakeholder pension schemes, group self invested personal pension scheme or a new scheme referred to as NEST (National Employment Savings Trust).


The smallest business (less than 50 employees) will need to join by February 2016.

Employees who will be entered in the scheme are those who earn more than £7475 (subject to statutory increases) and who are 22 or above but under State Pension Age.


Both employer and employee will contribute with a phase in period.

Years  Employer Contribution Employee Contribution
1-4                       1%                                 1%
5                           2%                                 3%
2017                    3%                                  5%
onwards    

As now with Stakeholder Pension Schemes, employees outside the scheme can request to be entered into a scheme but the employer is not obliged to ‘top up’.  Employees can opt out of the scheme if they wish but every three years such employees must be automatically re-entered (whereupon they can opt out again). 

Connected Car FinanceReady to take the connected approach?

We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Employment Law: Carer’s Leave

The regulations explicitly safeguard employees from any detriment or dismissal resulting from taking or seeking to take carer’s leave.

Employment Law: Annual Leave Changes

Several significant changes came into force on 1 January 2024 that affect the statutory annual leave and pay entitlements.

The office Christmas party season is here

Where an employee makes comments concerning a person’s body parts or style of dress that are intended to be good-natured but are perceived as offensive…

Update on Rights to Flexible Working Requests

Employers will remain entitled to turn down a request pointing to reasonable grounds as a basis for refusal.

Three new employment laws for 2024

The Carers Leave Act, The Neonatal Care (Leave and Pay) Act and The Protection from Redundancy (Pregnancy and Family Leave) Act.

Parents and Carers: New Protections at Work

Parents and carers will benefit from the following new employment protections that received royal assent in May 2023.

April 2023 Pay Rate Increases

The new financial year is upon us, with new rates abound.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.