MINIMUM PENSION CONTRIBUTIONS WILL INCREASE ON 6TH APRIL 2018, BY LAW!

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MINIMUM PENSION CONTRIBUTIONS WILL INCREASE ON 6TH APRIL 2018, BY LAW


As an employer with an active Pension Scheme for auto-enrolment, you need to know that, by law, the total minimum contribution percentage for auto-enrolment pension schemes will soon increase. This increase will happen in two stages, known as “contribution phasing”, with the first increase on 6th April 2018.

What are the contribution increases?

As of 6th April 2018 the contribution increases are:

Date Effective:                                              Minimum Employer Contribution:        Employee Contribution:        Total Minimum Contribution:  

Present – 5th April 2018                                 1%                                                                             1%                                                       2%

6th April 2018 – 5th April 2019                     2%                                                                            3%                                                       5%

6th April 2019 onwards                                  3%                                                                            5%                                                       8%

You will see from the table above that you currently contribute 1% (unless you have voluntarily decided to contribute more). Any enrolled employees will also contribute 1% (unless they have voluntarily decided to contribute more).

From April 2018 you must increase your contributions to at least 2%. Your employees must increase their contributions to 3%. These are the minimum contributions, and you must adhere to them.

Is there anything else you need to do?

You should inform your employees about these changes. We have attached a draft letter you can use. Remember that you should not encourage employees to opt out as this is illegal and if the Pensions Regulator were aware you were doing this they would issue penalties.

Please also note that if you employ more than 50 employees and you are increasing contributions beyond the minimum rate then you will need to consult your employees about the changes and give them 60 days to respond. You may wish to seek employment law advice about this. If you are enrolled for our tax insurance service you have access to free employment law advice. Please get in touch for more details.

More information?

For more information on changes to contribution levels please visit: www.autoenrolment.co.uk/contribution-phasing

Alternatively, give us a call on 01457 837744 or 0161 339 5689 if you would like to discuss this in more detail.

card

MINIMUM PENSION CONTRIBUTIONS WILL INCREASE ON 6TH APRIL 2018, BY LAW


As an employer with an active Pension Scheme for auto-enrolment, you need to know that, by law, the total minimum contribution percentage for auto-enrolment pension schemes will soon increase. This increase will happen in two stages, known as “contribution phasing”, with the first increase on 6th April 2018.

What are the contribution increases?

As of 6th April 2018 the contribution increases are:

Date Effective:                                              Minimum Employer Contribution:        Employee Contribution:        Total Minimum Contribution:  

Present – 5th April 2018                                 1%                                                                             1%                                                       2%

6th April 2018 – 5th April 2019                     2%                                                                            3%                                                       5%

6th April 2019 onwards                                  3%                                                                            5%                                                       8%

You will see from the table above that you currently contribute 1% (unless you have voluntarily decided to contribute more). Any enrolled employees will also contribute 1% (unless they have voluntarily decided to contribute more).

From April 2018 you must increase your contributions to at least 2%. Your employees must increase their contributions to 3%. These are the minimum contributions, and you must adhere to them.

Is there anything else you need to do?

You should inform your employees about these changes. We have attached a draft letter you can use. Remember that you should not encourage employees to opt out as this is illegal and if the Pensions Regulator were aware you were doing this they would issue penalties.

Please also note that if you employ more than 50 employees and you are increasing contributions beyond the minimum rate then you will need to consult your employees about the changes and give them 60 days to respond. You may wish to seek employment law advice about this. If you are enrolled for our tax insurance service you have access to free employment law advice. Please get in touch for more details.

More information?

For more information on changes to contribution levels please visit: www.autoenrolment.co.uk/contribution-phasing

Alternatively, give us a call on 01457 837744 or 0161 339 5689 if you would like to discuss this in more detail.

card

MINIMUM PENSION CONTRIBUTIONS WILL INCREASE ON 6TH APRIL 2018, BY LAW


As an employer with an active Pension Scheme for auto-enrolment, you need to know that, by law, the total minimum contribution percentage for auto-enrolment pension schemes will soon increase. This increase will happen in two stages, known as “contribution phasing”, with the first increase on 6th April 2018.

What are the contribution increases?

As of 6th April 2018 the contribution increases are:

Date Effective:                                              Minimum Employer Contribution:        Employee Contribution:        Total Minimum Contribution:  

Present – 5th April 2018                                 1%                                                                             1%                                                       2%

6th April 2018 – 5th April 2019                     2%                                                                            3%                                                       5%

6th April 2019 onwards                                  3%                                                                            5%                                                       8%

 

You will see from the table above that you currently contribute 1% (unless you have voluntarily decided to contribute more). Any enrolled employees will also contribute 1% (unless they have voluntarily decided to contribute more).

From April 2018 you must increase your contributions to at least 2%. Your employees must increase their contributions to 3%. These are the minimum contributions, and you must adhere to them.

Is there anything else you need to do?

You should inform your employees about these changes. We have attached a draft letter you can use. Remember that you should not encourage employees to opt out as this is illegal and if the Pensions Regulator were aware you were doing this they would issue penalties.

Please also note that if you employ more than 50 employees and you are increasing contributions beyond the minimum rate then you will need to consult your employees about the changes and give them 60 days to respond. You may wish to seek employment law advice about this. If you are enrolled for our tax insurance service you have access to free employment law advice. Please get in touch for more details.

More information?

For more information on changes to contribution levels please visit: www.autoenrolment.co.uk/contribution-phasing

Alternatively, give us a call on 01457 837744 or 0161 339 5689 if you would like to discuss this in more detail.