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The current hot topic

Auto Enrolment - getting it right

All small and micro businesses are to receive letters from The Pensions Regulator (TPR) in the coming months as part of a new campaign to give them key information on automatic enrolment, including when the duties affect their businesses.

In addition, the auto enrolment qualifying earnings bands and earning thresholds have been announced for 2015/16. These thresholds are relevant to employers complying with their automatic enrolment obligations to enrol and then make pension contributions for eligible employees. Employers must meet their obligations from their staging date, which can be found by using TPR website tool.

The revisions in the limits take effect from 6 April 2015 and follow the recommendations from consultation with interested parties.
TPR proposes to revise the limits to the following amounts:

  • £5,824 for the lower limit of the qualifying earnings band
  • £42,385 for the upper limit of the qualifying earnings band

These limits are used by employers to calculate how much pension contributions are due where band earnings are the basis of calculation.

The amount someone must earn to be automatically enrolled into a workplace pension (the earnings trigger) will remain at £10,000 per annum instead of being aligned with the personal allowance as it has been for previous years following concerns that low paid workers will miss out on pension contributions.

If you would like help with auto enrolment please do get in touch.

Internet links: Gov  Press notice

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