Company pension laws- Auto Enrolment/NEST
Auto enrolment and Nest are being phased in over the coming years to mean compulsary employer contributions, auto enrolment of employees, and that pension plans will need a default fund. Company pension reform means rules are changing about how employers must run their occupational pension scheme.
Essentially the Government is shifting the responsibility for pensions from public funds to the private sector. Company pension plans will need to meet many new criteria. Penalties and fines will be the result of non-compliance and monitoring will be more stringent than it has been in the past. Your company will need a pension!
The Pension Act 2008 introduced legislation that required employers to enrol employees into an occupational pension arrangement automatically. At the same time, both employers and employees will be required to make pension contributions of at least 8% of salary, with at least 3% coming from the employer. Both these requirements will be gradually introduced from October 2012. If an employee does not want to join a pension scheme they can opt out of the arrangement.