Pension Automatic Enrolment Updates

The minimum automatic enrolment pension contributions will be increasing again from 6 April 2019. The total contribution of the employer and employee combined will increase to a minimum of 8%. Of that 8% this must be made up of a minimum of a 3% employer contribution and the remainder to be made up of employee contributions.

Employers are also required to re-enrol for automatic enrolment purposes every three years from the anniversary of their staging date. This will mean re-enrolling any of your employees who chose to opt out of the pension even though they are eligible. This re-enrolment process can be completed in the period three months prior and the three months after your three year anniversary of your staging date so you have a total of six months to complete it.

Employees can continue to opt out of the pension if they wish but this must be done directly with the pension provider. As employers you issue your employees with opt out forms. Once the opt out process has been completed between the pension provider and employee the pension provider will issue a refund for any pension payments that have been made.

Written by Alice Gay ACCA ACIPP

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