Instant pensions duties start for new businesses

Start-up businesses will from 1 October have a legal duty to put staff straight into a workplace pension as soon as they employ them.

The start of instant pension duties coincides with the fifth anniversary of automatic enrolment and shows that providing a workplace pension is now simply 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 launched a new online suite of information and tools for new businesses where they will find all the information they need about what to do and when.  A link to this can be found here.

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.

“Every employer who has successfully met their duties and done the right thing for their staff has contributed to the success of automatic enrolment.”

TPR has published its latest research into employer awareness and understanding of automatic enrolment which shows employers continue to think it is good for their 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.”

 

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