Workplace Pensions Reform 2012 – Keep Calm & Carry On

The media is full of articles relating to the Workplace Pension reforms. Lord, don’t&the media love to make it sound like some scary bear trap there to catch you out?!

Changes like this can seem daunting to SME’s, they really don’t need to be!

We’ve put together a few notes to help you understand what all this means to you, the employer.

  • What is this “Staging Date” term that is being bandied about? The Staging Date is the date that automatic enrolment becomes you, the employers, legal duty. This date will be based on the number of employees you have as at 1st April 2012. As an example, if you have fewer than 50 employees on 1st April 2012, your staging date will not be until June 2015. To see the Staging Date timetable please go to&
  • Who needs to be automatically enrolled in a pension scheme? Your workers aged between 22 and state pension age, working in the UK, earning above £7475* will automatically qualify for enrolment into your pension scheme.&
  • Will my payroll software still work? It is expected that the major providers of payroll software will offer at least what is known as Core Functionality inside their payroll package. This would check the eligibility of employees, calculate their entry date, calculate and make the deductions automatically and process refunds for workers that may opt out. Some software providers will additionally offer greater functionality seeing the process through to the contributions being paid to your chosen pension scheme.
  • What will the scheme cost me as an employer? As an employer you will be expected to contribute 3% of the employees gross salary. The employee will have to contribute a minimum of 5% of their gross pay making the overall contribution to their pension fund 

We think that is enough information &to absorb for now, we hope you have found it useful. It goes without saying we will be back with more information on this and other relevant &topics soon, so keep your eye on the blog!

If you want more information on this or any other subject, please don’t hesitate to contact us! In the mean time SME’s