All employers will have to automatically enrol employees who are:
• Aged between 22 and State Pension Age and
• Earning more that the ‘earnings trigger’ in each pay reference period and
• Not currently in a qualifying scheme.
A qualifying scheme can be a personal pension scheme or an occupational pension scheme (as long as it meets the prescribed requirements).
Employees of all employers, irrespective of size, must be automatically enrolled.
Employers will be able to delay auto enrolment of new employees for up to three months from the date they join service.
If a business fails to meet it’s auto enrolment requirements then The Pensions Regulator may impose a fine following a three stage process;
1. An initial warning letter from The Pensions Regulator.
2. A second warning letter and a fine of £400.
3. Subsequent daily fines amounting to the following;
Number of Employees – Daily Fine Amounts;
500+ – £10,000
250 to 240 – £5000
50 to 249 – £2,500
5 to 49 – £500
1 to 4 – £50