What is Workplace Pension Auto-Enrolment?
To help people save for retirement, employers have a legal requirement to auto-enrol their eligible employees into a workplace pension scheme.
Introduced by the Government in 2012, the legislation was first rolled out to large employers, followed by medium-sized, and then small employers. All new and existing employers should now auto-enrol their eligible employees unless they choose to opt out.
The contributions employers and employees must make each month has been increasing in phases, with the next increase scheduled for 6 April 2019.
Employers must auto-enrol employees who:
- are aged between 22 and state pension age;
- earn more than £10k a year (2018/19); and
- ordinarily work in the UK.