Pension Contribution Increase - Will this affect you?
By law minimum pension contributions will soon be increasing
Under the Pensions Act 2008, the minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase.
Does this apply to me?
If you have put your staff into a pension scheme for automatic enrolment you will need to make sure that at least the required minimum amount is paid by you and your staff into the scheme. If you don’t have any staff in an automatic enrolment pension scheme, then you do not need to take any further action to implement these increases.
When do I need to make the increases?
You must increase the minimum contributions from 6 April 2018 and then again from 6 April 2019. All employers must take action to make sure at least the minimum amounts are being paid into their automatic enrolment pension schemes.
What are the increases?
The table below shows the minimum contributions that most employers pay and the dates when they must increase;
You may have agreed with your pension provider to calculate minimum contributions in a different way. If this is the case, you will need to apply different increases. To find out what these increases are go to: www.tpr.gov.uk/certified
What do I need to do?
From 6 April 2018, the way you calculate and pay contributions into your pension scheme, must have been changed to reflect these increases.
If you manage your own payroll and automatic enrolment duties, then please contact us so that we can ensure that your software is updated to reflect these new minimum requirements. If, however, we administer your payroll and automatic enrolment duties, we will ensure that the minimum contributions are calculated accurately and submitted to the pension provider.
You should also let your staff know about any increases being applied to their contributions. We have prepared a draft letter that you may wish to provide to your staff members that explains this to them. If you are already paying above the increased minimum amounts, you do not need to take any further action. For more information go to: www.tpr.gov.uk/increase
It is your responsibility to make sure the right minimum contributions are being paid for your staff. Make sure you have plans in place to comply with the law.