For the past few years, we’ve had entrepreneurs such as Theo Paphitis, reminding employers that they need to automatically enrol their employees into a work place pension.
Clearly some people in Government are worried that the message is not getting through, especially to some smaller employers, hence the launch last night of ‘Workie’, a Sesame Street style character.
Although the rules are more complex, in simple terms employers with staff who earn more than £10,000 per year and are over the age of 22 will need to set up a pension scheme and automatically enrol their staff. Both the employer and employee must contribute, although workers can opt out if they wish.
The turn of small businesses
The roll out of Automatic Enrolment started with larger employers and since 2012 over five million workers have been signed, with 61,000 businesses complyiny with the new rules.. However, as the time comes when smaller employers must comply, including those with only one member of staff, the Government clearly believe additional publicity is needed.
‘Workie’ is the face of an £8.5 million campaign to inform employers of their obligations, which are not met, could result in large fines being levied.
Speaking at the launch of ‘Workie’, Pensions Minister, Baroness Ros Altmann, said: “We have made great strides forward by automatically enrolling more than five million people into a workplace pension – now the challenge is to make sure hardworking people with every type of employer get to enjoy this major financial benefit.”
The Minister continued: “This is a fun and quirky campaign but behind it lies a very serious message. We need everyone to know they are entitled to a workplace pension – and we need all employers to understand their legal responsibility to their staff, but also to feel more positive about engaging with workplace pensions.”
“This government is committed to providing security for working people at every stage of their lives, and that includes giving people the chance to plan for a financially secure retirement. Automatic enrolment is a big part of that.”
Does your business need to comply?
If you run a small business you will have to comply with the Automatic Enrolment rules, which are complex and can be confusing.
We are here to help.
We’ve advised a number of employers and would be happy to help you if your business is affected, call Sarah or Bev today on 0115 933 8433 or email firstname.lastname@example.org