WHAT DO YOU HAVE TO DO?
WHEN DO YOU HAVE TO DO IT BY?
WHO DOES IT AFFECT?
HOW MUCH DO YOU HAVE TO CONTRIBUTE?
WHY CHOOSE FSB WORKPLACE PENSIONS?
WHERE DO YOU GET STARTED?

Automatic enrolment affects all UK employers.

Every employer with at least one member of staff will be affected by the new automatic enrolment legislation. Employers will be required to set up a qualifying workplace pension scheme and enrol any staff that are eligible and contribute towards it.
The Federation of Small Businesses (FSB) has arranged a solution designed to make complying with the legislation convenient and straightforward.

For further information, please download our Scheme Information Guide.

Employer Duties Key Facts

The date you need to comply with the legislation is called your ‘Staging Date’. By this date you will be required by law to:

    • Provide a suitable (and qualifying) workplace pension scheme. To be suitable for auto enrolment a scheme must:
      • Be registered with the Pensions Regulator for auto enrolment.
      • Enrol all eligible employees without any decisions needing to be made before joining.
      • Contain a default investment fund.
      • Require minimum contributions (as prescribed by legislation) to be made.
    • Complete the Declaration of Compliance for the Pensions Regulator.
    • Assess your employees (and continue to do so).
    • Give statutory communications to your employees.
    • Make contributions.
    • Keep Records.

 

Employers CANNOT offer advice, discourage membership to new or existing employees, encourage opting out or IGNORE this legislation.

The Pensions Regulator will police and enforce the new legislation.

Responsibilites

Auto-enrolment is the responsibility of the employer, not the Government nor the pensions industry.

The Pensions Regulator will oversee employer compliance and has the power to fine employers for non-compliance.

IMPORTANT: All employers must comply with their duties and have given their employees correct, compliant and timely information, by their staging date. This information must be given in prescribed format and records must be kept of what was issued, and when.

What are the Penalties?

As details of compliant schemes will be linked to PAYE records the authorities will be able to identify those employers who fail to comply. The penalties for non-compliance are severe and will be implemented as below:

Formal notice issued
£400 fixed penalty issued
Escalating penalty charged daily. For a firm employing between 5 and 49 employees this will be £500 per day