Everything You Wanted To Know About Auto-Enrolment Pension

The UK Government has instructed a few months ago that all small to medium scale businesses in the country need to start a pension scheme at their workplace and enrol eligible employees automatically. Further to this, they would have to make a yearly contribution to their employees’ pensions, such that an equal amount of money would also have to be donated by the employees. It is one of several of the government’s recent efforts to increase the standard of work and life in the country, and is also being looked at as a step for the current conservative government’s plan to cut social security to save funds.

If you are a business owner this applies to or an employee working at such a business, then you needs to be informed of how it concerns you and how you will start being affected by it. Here are a few headers.

1. This applies to you if

You are a medium scale business that has not yet incorporated a pension scheme into its workplace or a small scale business that does not yet have a staging date, that is, a date in future at which you will start paying pensions to your employees.

2. You are eligible if

You fall under a specific set of criteria laid out by the government. This include but are not limited to working in the UK, being older than 22 and younger than the minimum age at which pensions start being given out (this varies from place to place in the UK), do not already qualify for an auto enrolment pensions scheme in some other place and, finally, make at least £10000 a year.

3. You can make an application if

You do not fall into the criteria mentioned above but are falling out only on grounds of age or minimum annual income. You are allowed to make a formal application for pension and if accepted, your company will have to pay you a minimum of one per cent of your qualifying earnings every year as per government orders.

4. The concerned governing body is

The pension regulator’s office of the UK government. If you have enlisted for auto enrolment pensions, chances are that the pension regulator will contact you several times to discuss the progress of your work and to discuss when you are starting to hand out pensions if you are a small business.

5. If you want to opt out you can

Contact your employer and have them remove your name from the enrolment list. While it is not common for people to deny pension, around nine per cent of the qualifying personnel in the country have denied their pensions for one reason or another. It is undoubtedly your right to deny, but it is a crime on the part of your employer if they ask you or otherwise attempt to persuade you to opt out of asking for pension. If this happens you are eligible to sue.
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