Maxim Financial Services provide a cost effective service to employers to ensure you meet all the requirements when setting up a Workplace Pension Scheme.
You must provide a Workplace Pension Scheme for certain members of your workforce from 2012 and as an employer you will need to make a contribution towards it. Even if you already offer pension arrangements for your employees, you will still have some new obligations to meet.
The pension scheme that you provide must meet a number of conditions based on the level of contributions paid or the benefits received.
Membership of the scheme must be automatic for certain workers, known eligible jobholders. An eligible jobholder are workers who earn more than minimum earnings, are aged between 22 and state pension age and work in the UK. Because these people will not have to do anything to join the scheme, the process is known as automatic enrolment. Most of your workers are likely to be included in the automatic enrolment process. They can choose not be in the scheme if they want to, by actively opting out.
If you already have a company pension scheme, you may be able to use it if it meets certain qualifying conditions.
Each employer will be given a date from which the changes will have to be in place. This is known as your staging date.
You must contribute at least 3% of your worker’s earnings, although you can choose to pay more if you wish. The worker will be responsible for paying the rest. They will get tax relief on their contributions.
Even if you already provide a pension scheme for your workers, you will need to check if it is a qualifying scheme.
It will need to meet certain requirements depending on the type of scheme you have. It must also be appropriate for automatic enrolment.
You should review your existing scheme and discuss the rules and possible changes with your trustees or pension provider.
Many occupational and group personal pension schemes will qualify. To be a qualifying scheme, it needs to meet certain requirements.
To be a qualifying scheme, minimum contributions must be made or it must provide a minimum rate at which benefits will build up. Even if it doesn’t qualify at the moment, you may be able to change he scheme rules or amend the terms of the policy so that you will be able to use it by the time your staging comes round.
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