Staff and employers should prepare for the 2012 Pensions Reform which will see the introduction of ‘Personal Accounts’.
The national pension plan will be known as ‘Personal Accounts’ and these effectively provide access to a lost-cost pension for employees.
In brief, the new system will effectively force many workers to save for their pensions for the first time - and force their employers to contribute as well.
Minimum Contributions
At least 8% of an employee's qualifying earnings must be paid into a pension, which is made up of 1% tax relief, 3% employer contributions and 4% employee contributions.
If an employer already has a pension scheme in place, and this scheme already meets the minimum requirements of the Pensions Act, they will have the ability to self certify to that affect.
Employees themselves are also able to opt out of their employer’s pension schemes. If this is the case, the employer will not be liable for paying employee contributions.
Related Pensions Reform 2012 Links
Other Useful Pensions Reform 2012 Tools
Meridian has developed a host of client support services on the Pensions Reform 2012, to find out more simply click on any of the links below:
Forthcoming
‘Understanding Recruitment Law’ events are currently being scheduled for 2011. To register your interest in any topic email
UnderstandingRecruitmentLaw@meridianbs.co.uk
