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PERSONAL ACCOUNTS DELIVERY AUTHORITY Main points Phased in from 2012 Employers will need to automatically enrol Pay a contribution of 3% for those who remain members. The key requirements from 2012 are Auto-enrol all jobholders in a pension scheme if they are aged between 22 and state pension age and earn more than £5,035. A contribution of 8% of band earnings must be paid, with the employer paying at least 3%. E.g. Employee 4% Employer 3% tax refund 1% People can opt-out of the scheme and, if they do, no contributions need to be made on their behalf. Employers need to re-enrol employees who opt-out, at least once every three years. Employers can choose to use a good quality private scheme. Band earnings are earnings between £5,035 and £33,540 (in 2006/07 earnings terms). Bribe them not to join?. No. One off bonuses or cash inducements not to join are not allowed Should I consider a Defined Benefit or Final salary scheme? Contracted Out at 1/80th Contracted In at 1/120th Maybe if you are a medium to large employer , over 300 employees, And they are mostly young, under age 30, and dont stay long! If you are and want advice contact us! Otherwise NO!
Existing Stakeholders are VERY likely to be OK The impact will vary enormously so, whatever the employers circumstances, the need for financial advice has never been greater. Useful site: http://www.thepensionservice.gov.uk/home.asp
TAX TREATMENT AND TYPES OF POLICY ARE COMPLICATED YOU SHOULD TAKE PROFESSIONAL INDEPENDENT ADVICE |