Start-ups alerted to instant pensions duties
New businesses which start up from October this year are being warned they will have instant pension duties.
The alert comes as the current schedule for employers to meet their automatic enrolment duties comes to an end. All businesses which existed before April 2012 have now passed their staging date.
More than half a million employers have now complied with the law and have integrated automatic enrolment into the day-to-day running of their business.
From October, new businesses will need to put pension plans in place alongside all the usual tasks associated with setting up a business.
Executive Director of Automatic Enrolment Charles Counsell said: ‘More than seven million are now saving into a workplace pension and automatic enrolment is now simply part of running a business.
‘From October, as soon as you take on staff you will have duties towards them. Anyone setting up a business and taking on staff will need to work automatic enrolment into their plans. I urge new businesses to visit our website for our new guidance on what they need to do.”
The advice to employers comes as research published today by TPR demonstrates the roll out of automatic enrolment continues to run smoothly.
The employer awareness and understanding report shows the vast majority who are reaching their staging date this year are confident they will be compliant with their duties.
In addition almost half of new businesses who have only been trading for two or three months said they had already taken their first steps to meet their duties, by determining how many staff they need to enrol into a pension scheme.
The survey also shows that employers, including new businesses, continue to think that automatic enrolment is good for their staff.
A similar survey of business advisers also shows that the majority of business advisers are already helping their clients with automatic enrolment.