Trustees will be aware that the government introduced legislation designed to help people save for their retirement. Regulations introduced back in 2012 require every employer, regardless of size, not only to automatically enrol the vast majority of their workforce into qualifying pension schemes, but also to make contributions on
The timetable started with the largest entities in October 2012, followed by medium and then smaller entities, with all employers having to enrol their staff by April 2017. Therefore the start date (also known as a staging date) for smaller charitable employers may have been reached. You can confirm your staging date from your Employer’s PAYE reference number using the following link to the pension regulators website:
When do I need to think about this?
The final staging periods are approaching. Therefore if you have not already started to plan for the change it is advisable to start sooner rather than later.
What will it cost the charity?
Contributions will be split between the employer, the employee and the government. The level of these contributions will be based upon the employee’s earnings. However charities should be aware that casual workers may be included within this legislation, we recommend taking specialist advice when considering who will be included.
The total contribution levels will be phased in over a number of years, but a likely employer contribution of 3% could be a significant additional cost for the charity. Combining this with annual increases in the minimum wage, and possible additional pressure to pay the living wage, could mean that wage costs become an ever increasing proportion of the charity’s cost base. Some benefit for small charities could come in 2018 when they will be able to access the apprenticeship levy scheme to fund future apprenticeships.
What I need to do?
There are important decisions that need to be made. These include how to meet the requirements of the new legislation and who will handle the increased administrative burden. Blick Rothenberg has worked alongside a pensions and benefits specialist firm for some time, and would be able to make an introduction to assist your transition.
For more information, please contact your existing Blick Rothenberg contact in the first instance or Ella Waddingham at: firstname.lastname@example.org