10 Mar Employers responsible for contributory pensions
I don’t have to enrol my nanny/housekeeper/carer, etc. into a pension scheme; I’m not a company, so it doesn’t apply to me…
Wrong. Yes, it does, or at least it will do in the fairly near future as no matter how many, or how few, people you employ, you ARE an employer and as such fall within the government’s new automatic enrolment of staff into a pension scheme AND must make contributions for them.
Ignorance will be no excuse. Yes, it’s a changing world with changing responsibilities, and one of the responsibilities the government says we must take on is to ensure people put money into pension funds as the state cannot afford a system which will pay it all for a growing and aging population.
This is the first time employers have been obliged to provide a contributory pension. All employers, even the smallest, will have to comply with the new legislation and compliance will have a significant impact on costs and resources.
Auto-enrolment and contributions are being phased in over a number of years. There are key milestones as the system will be rolled out over a period of time, with the largest first and the smallest last. Click on www.thepensionsregulator.gov.uk for more information.