Key facts about auto enrolment
The Government has introduced auto enrolment to help more people save for their future.
This means that employers will have to automatically enrol some workers into a workplace pension plan and give other workers the option to join.
Auto enrolment and the employer duties will be a big challenge for employers and they're likely to look to you for help. We want to help you make the most of this opportunity so you can help employers prepare for their duties. Here you'll find the key facts about the employer duties and what they mean for employers and their workers.
All of the information is based on our current understanding of the relevant legislation and regulations and may be subject to change.
The employer duties started being 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.
Most employers will have to set up and contribute to a pension scheme suitable for auto enrolment. Auto enrolment schemes must meet three sets of criteria.
Employers must assess their workforce to determine which type of worker they employ. Workers can be categorised as eligible jobholders, non-eligible jobholders or entitled workers.
Employers will have different duties depending on the types of worker they employ. They'll need to automatically enrol some workers into an auto enrolment scheme and arrange membership of a pension scheme for others.
Employers will be responsible for the ongoing maintenance of the scheme and have an obligation to keep certain records. This includes information about their workers and the pension scheme which must be provided to TPR when requested.
The employer duties are not optional. TPR will ensure employers comply with their duties. Although TPR's approach will be to educate and encourage compliance, employers will face substantial fines or even imprisonment if they don't comply.
Published April 2014
For professional advisers only