#NEWS

01/03/2019

Employer announcement – is your business ready for April’s pension contributions increases?

Pension auto enrolment legislation came into force in October 2012, making it compulsory for all UK employers to have a pension scheme in place for their employees, enrol their employees in the scheme and pay pension contributions for them.

 

What is happening now?

The final stage of Pension Contributions phasing comes into force from 6th April 2019.  From that date all employers in the UK will have to ensure that their pension contributions are in line with the new minimum levels.

 

Does it affect me?

If you employ at least one person in the UK, you are an employer and therefore have to comply with Auto Enrolment legislation, meaning you will be affected by the imminent change in minimum pension contributions.

 

What do you have to do before April 2019?

 

To help employers avoid any fines from the Pensions Regulator, we have prepared a  brief checklist of the key actions you need to take.

 

Preparations for the pension contributions increase can be a lengthy process, and would normally need to include:

 

  • Assessing which certification category your employees fall into
  • Reviewing current contribution levels and deciding on your future strategy
  • Creating employee communications which explain the changes
  • Payroll Planning and Implementation
  • (Re)consideration of introducing a Salary Exchange Arrangement – a tax efficient way to save national insurance costs on contributions.

 

What happens after April 2019?

 

Once you have established your new contributions strategy, communicated the changes to your employees and successfully increased your minimum contributions, there are still a couple more things for you to do:

 

  • Manage employee contribution decrease requests (opt downs), if permitted
  • Update your Auto Enrolment Certification
  • Ensure you are prepared for a Regulator audit

 

How we can help

 

We have lots of experience of helping companies with this process and our Employee Benefits team will be happy to provide you with any advice or assistance you need.

 

If you’d like to talk to our pensions specialist Dasha Ivanova, please call her on 07892 712962 or email dasha.ivanova@fincheb.co.uk