Pensions Update

The Pensions Act 2008 require all employers (other than one director-owner organisations) to offer a qualifying workplace pension scheme to all �eligible jobholders�.

Here are some important elements of the new law:

• A business needs to identify who are �workers�.  �Workers� are defined as any individual who works under a contract of employment or has a contract to perform work or services personally and is not undertaking the work as part of their own business.

• There will be three categories of �workers� � �eligible jobholders�, �non-eligible jobholders� and �entitled workers�.  These categories are decided on age and earnings level.

• A National Pensions Savings Scheme requires automatic enrolment for all "eligible jobholders" unless the employer already offers a scheme, which is as good or better.

• The Government's scheme will be known as the "National Employment Savings Trust" (NEST).

• The Pensions Regulator will contact all eligible employers at least 12 months prior to their scheme starting to let them know the process.

• Both employees and employers will contribute to the scheme, which will be compulsory for the largest employers from October 2012.

• The scheme will be gradually introduced over a period of four years, starting from October 2012.

• The Pensions Regulator will ensure that employers fulfil their duties under the Act.

• Employers must not offer advice on pensions as this is against the Financial Services Act.

• Employers need to be aware of the qualifying pensions and exemptions from auto enrolment.  They also need to �opt in or opt out� of the scheme annually.

• Employers need to consider amending employee contracts and handbooks to reflect the new pension arrangements

I work with a number of associated professionals including HR, Health and Safety and Financial Advisors.  If you need Insurance, HR, Health and Safety or independent financial advice, please give me a ring and I�ll be happy to help.