Employers will be required to enrol most employees (known as jobholders) into a pension scheme and make contributions to it. The pension scheme must meet certain minimum requirements so that it is a Qualifying Scheme (QS). The date from which employers will need to do this varies from employer to employer and is called the ‘staging date’.
Auto enrolment will have a major impact on employers, particularly for those with no current provision, or current low pension membership participation rates.
• Choose the qualifying scheme to discharge the newly arising duty and enrol qualifying employees into the qualifying scheme; and either
• Make a minimum 3% contribution towards a defined contribution scheme (based on Qualifying Earnings) which will be phased in or
• Offer membership of a defined benefit scheme which either has a contracting out certificate or meets the ‘test scheme standard’.
• Are already members of a qualifying scheme; or
• Become members of such schemes.