Workplace pensions…

…are heading your way, but are you ready?


Actually, if you’re a large UK based employer, then they are already here and you will probably be well aware of the impact on your business and the penalties for non-compliance. However, if you’re an employer or employee in the ‘small-to-medium-enterprise’ (SME) market then Workplace Pensions may not be on your radar as yet.

This, of course, will change in time, particularly when the letter from The Pensions Regulator arrives with the daily mail, telling you when your staging date will be. At that point you may suddenly have a few unanswered questions, such as: What is auto-enrolment all about? How and when will it impact on my business? What are the likely costs and the potential penalties? Who can I turn to for help and support?

The answer to the last of these is the easiest: Cansquared Ltd can provide all the help you may need.

“I couldn’t recommend Geoff highly enough, he has made my job so much easier and enjoyable and, more to the point, he makes pensions interesting, so that our employees see the value of investing into their futures, today.”


Key facts about auto-enrolment

  • Between 2012 and 2017 all eligible employees will have to be auto-enrolled into a workplace pension scheme
  • An eligible employee is someone who is not already in a pension at work, is aged 22 or over, is under State Pension age, earns more than £10,000 and works in the UK
  • All employers must make (at least) minimum contributions equivalent to 3% of qualifying earnings
  • Eligible employees will also have to contribute where the employer doesn’t cover the full cost
  • The employee contribution will be 5% (less tax relief) where the employer pays the minimum of 3%
  • These minimum contributions will be phased in over 3 years
  • Staff can opt-out but will be re-enrolled after 3 years or if they change jobs
  • The employer has a choice over the type of scheme into which it will contribute