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A major change is underway to provision of pensions in the UK. Employers will soon be obliged to enrol all staff in a pension scheme and make contributions for them – a process called “auto-enrolment”.

This change will be implemented over the next few years. Each employer will have a staging date for the beginning of auto-enrolment. The process will start with the largest, but there are no exceptions even for those with very few employees..

Employees may notice little or no change if they are already members of a work-based pension scheme. Those who are not members will be enrolled into a qualifying scheme to which they and their employer will contribute.

Employers, however, will need to consider what steps they need to take and when. Even where there is an existing work-based scheme in place it may be necessary to make changes to ensure its compliance with auto-enrolment. The Pensions Regulator will be enforcing employers’ obligations and so action is essential.

For further information please contact chris.pritchett@burges-salmon.com