Since June 2015 this is now a legal requirement of smaller SME’s and micro businesses to comply.
To give all businesses sufficient time to comply with the law and to help providers cope with the volume the regulator has ‘staged’ the date by which your business must be have a workplace pension. This will hopefully enable the tens of thousands of small businesses to set up a compliant workplace pension, carry out the essential staff audit eligibility criteria, configure the payroll software and ensure they have a person or company appointed to manage the on-going monthly payment cycle staff eligibility checks.
This involves, eligibility of age and salary including bonuses, entitlement and non- entitlement employees, opt outs, opt ins, joiners, leavers to ensure your business complies with the legal rights of the employee entitlement. This task is not to be under estimated and is crucial to understand and comply with on-going pension maintenance as failure to recognise and identify issues can result in penalties from The Pensions Regulator [TPR].
It is the responsibility of the employer to have a compliant workplace pension for your staff even if they all elect to opt out after it is live.
Having a workplace pension is not optional as an employer its a must have. It should be seen in the same light as having business insurance as all employees current and future will expect to be auto enrolled into your workplace pension scheme and will treat the pension scheme as a standard benefit of the employment package.
Workplace Pensions is a positive step towards creating a savings culture for all workers regardless of position from management to cleaners. It is the right of all eligible workers in the workplace to have a scheme that the employer equally contributes to. The purpose to build up a worthwhile pension pot that ultimately belongs to the worker.It’s not a company pension scheme its a workplace employees pension scheme.