20 April 2016
From 1 October 2012 a fundamental change to employers’ obligations concerning workplace pensions took effect, requiring employers who have passed their “Staging Date” to automatically enrol eligible jobholders into a suitable pension scheme and fund a minimum level of pension savings (without reducing pay or benefits elsewhere). The new rules will require all employers to review (and, if necessary, amend) their current pension arrangements or face substantial penalties for non-compliance.
By 1 October 2018 employers will have to make a minimum employer contribution into a pension. For those employers who currently provide little or no pension for their workers, this additional cost may be significant.