Pensions Reform
MidlandHR and Pensions Reform
October 2012 will see the start of workplace pensions reform. As a leading supplier of talent management, workforce planning, HR and payroll solutions and services, MidlandHR are working closely with both The Pensions Regulator and the National Employment Savings Trust (NEST) to ensure that we are fully prepared to support organisations in complying with the new duties that this will bring.
This page of the website will be continually updated with the latest pensions reform information, developments and event details. Also keep a look out on the MidlandHR blog for pensions reform entries from our legislation experts.
Introduction to Pensions Reform
Established by The Pensions Act 2008, the process will start with the largest employers and be phased in over several years. This will involve employers having to automatically enrol employees who meet certain requirements onto a qualifying pension scheme (automatic enrolment).
Automatic enrolment
The requirement to automatically enrol employees is dependent on them meeting the following criteria:
- Aged between 22 and state pension age
- Working, or ordinarily working, in the UK
- Earning above a certain amount (currently proposed to be £7,475)
Staging date
This is the date at which employers need to begin auto enrolment and is based on the number of people in their PAYE scheme on 1 April 2012. Staging dates for organisations with 250 and more employees are provided on The Pensions Regulator’s website: Staging dates timeline | The Pensions Regulator. Staging time bands for employers with fewer than 250 employees in their PAYE scheme are also provided and will be updated with individual dates when these are published by the Department for Work and Pensions.
Staging dates for organisations with 50 or fewer workers have been delayed until June 2015 at the earliest.
Choosing a pension scheme
Employers will need to select a pension scheme that they can use for automatic enrolment. Whether this is an existing scheme or a new scheme set up specifically for this purpose it will need to meet certain Government standards. Factual information on the required criteria is provided in this Pension Regulator document www.thepensionsregulator.gov.uk/docs/Pensions-reform-pension-schemes-nov-2011.pdf
National Employment Savings Trust (NEST)
NEST is a qualifying pension scheme set up by the government to cater for the needs of low to medium income earners. NEST has a public service obligation to accept any employer but employers must bear in mind that there are other options available. All schemes should be considered to identify which one best meets the needs of their workforce. More information can be found on the NEST website.
Pensions reform seminars
We will be holding pensions reform seminars in spring 2012 to deliver advice and guidance on how pensions reform will affect your organisation, regardless of the systems you use. The seminars will include guest speakers from The Pensions Regulator and NEST and an update on MidlandHR's position will also be provided. Please email marketing@midlandhr.co.uk to express an interest in attending; we will contact you with further details when these have been confirmed.
Useful links
Interactive tools on The Pensions Regulator website provide a simple overview of employer duties under pensions reform www.thepensionsregulator.gov.uk/tools.aspx
The Pensions Regulator website also provides detailed information and guidance on additional aspects of pensions reform www.thepensionsregulator.gov.uk/pensions-reform.aspx
More information
We will update this page with more information as it becomes available.