Auto Enrolment and Pension Reforms

Group of People Standing Holding Pension Letter

Helping to lighten the load on your Auto Enrolment Responsibilities

We appreciate that there can be a lot of pressure on businesses to comply with the government directive, but CHN Financial Consultancy are here to help lighten the load and take some of the burden away from your business!

Auto Enrolment and Pension Reforms

The National Employment Savings Trust (NEST) is a government backed initiative created to address the issues facing UK pension savings.

Why are they being introduced?

It has long been recognised that most people are not saving enough for retirement and, as a result may not be able to afford to live comfortably in their retirement on just the state pension. As people are also living longer, there is increasing strain on the State benefits system, so private pension provision is becoming increasingly important.

What are the reforms?

To address this, NEST has made several changes, including new employer duties for pensions. From October 2012, employers have been required by law to:

  • Automatically enrol all their eligible employees not already in a good-quality pension scheme into a Qualifying Workplace Pension Scheme (QWPS) within one month of becoming eligible.
  • Pay pension contributions for every employee who does not opt out of the QWPS.
  • Every employee aged between 22 and the state retirement age must be enrolled into a work place pension, provided their income exceeds £10,000 a year.

For many smaller employers, this could mean having to use NEST for their employee benefits.

However, there are still a number of valid reasons why companies might look at using alternative private sector schemes. CHN are ideally placed to search the whole marketplace and come up with a solution that meets your Auto-enrolment needs.

To discuss this in further detail please fill out our online enquiry form and we will be in touch. Alternatively, call us on 0113 3878240 to arrange a no-obligation appointment.

Clayton Holmes Naisbitt