People are living longer which means there will gradually be fewer working people compared to an increasing number of retired people.

So from October 2012 the Government introduced new legislation to get more people saving for their future. This will mean that employers will have to enrol certain employees automatically into a pension scheme and make contributions on their behalf.

Automatic enrolment obligations will be a big challenge for employers. Morlaix want to help you as employers to prepare for your new duties. Here are the facts about the employer duties and what they mean.

When it's happening

The main employer duties were introduced in stages from October 2012. Employers need to identify their staging date to determine when the duties first apply. This also sets the date for automatic re-enrolment.

The effect on pension schemes

Most employers will have to set up and contribute to a pension scheme suitable for automatic enrolment. Automatic enrolment schemes must meet three sets of criteria.

The effect on the workforce

Employers must assess their workforce to determine which type of workers they employ. Workers will be categorised as eligible jobholders, non eligible jobholders or entitled workers.

Employer duties

Employers will have different duties depending on the types of worker they employ. You will need to enrol automatically some workers into an auto enrolment scheme.

Keeping Records

Employers will be responsible for the ongoing maintenance of the scheme and have an obligation to keep certain records. This includes information about the workers and the pension scheme which must be provided to The Pensions Regulator (TPR)

The Pensions Regulator

The employer duties are not optional. TPR will ensure employers comply with the new duties. Although their approach will be to educate and encourage compliance, employers will face substantial fines or even imprisonment  if they don't comply.

The National Employment Savings Trust (NEST)

NEST is a pension scheme that employers can use to meet their employer duties. It is aimed at low to medium earners and small employers.

Morlaix, Chartered Financial Planners would be delighted to hold a no cost, no obligation initial meeting to ensure you are fully aware of your new duties.