Instant pensions duties start for new businesses
On 1 October a new legal duty came into force requiring businesses to put staff straight into a workplace pension as soon as they are employed. The start of instant pension duties coincides with the fifth anniversary of automatic enrolment, emphasising the point that providing a workplace pension is now an integral part of running a business.
Since 2012, more than 8.5 million more people have begun saving into a workplace pension, while nearly 800,000 employers have met their automatic enrolment duties.
The Pensions Regulator (TPR) has now launched a new online suite of information and tools for new businesses where they can find the information they need about what to do and when.
TPR’s Director of Automatic Enrolment, Darren Ryder, added:
“The start of instant pension duties for new businesses will continue the great strides automatic enrolment has made to reverse the downward trend in workplace saving. Providing a workplace pension is now the business norm and staff expect to be saving into a pension as part and parcel of their employment.”
TPR has published its latest research into employer awareness and understanding of automatic enrolment, which shows a clear majority of employers continued to believe that the introduction of automatic enrolment is in principle both a good idea for them and their members of staff.
TPR will also publish survey findings later this autumn that show most of those who work with employers, such as accountants and independent financial advisers, are aware that new businesses will have instant pension duties.
Mr Ryder added:
“Advisers play an important role in supporting employers; therefore it is vital they are equipped with the information they need so they can help their clients who are setting up a new business. I urge advisers to visit our website where they’ll find important information to help their clients successfully meet their automatic enrolment duties.”