DWP provides breathing space for small firms on pensions
The Department for Work and Pensions has responded to pressure from small businesses and put back the date when they must automatically enrol staff into an employer pension scheme.
You are probably aware that the government is introducing legislation to encourage more people to make better provision for their retirement by saving more.
All employers will eventually have to:
- Create a pension scheme for employees
- ‘auto-enrol’ eligible employees into the scheme
- Make employer contributions into the scheme
- Take deductions of employee pension contributions from the employees pay
The DWP has recognised that tough economic circumstances make it particularly difficult for small businesses to implement these changes at present. As a result they have given more time for the scheme to be introduced.
Companies with 30 to 49 staff will have to implement between 1 August 2015 and 1 October 2015.
Companies with fewer than 30 qualifying workers must implement the scheme between 1 January 2016 and 1 April 2017.
Craig Beale, one of the Directors of Lewis Smith & Co., welcomed the postponement:
“The pensions automatic enrolment programme has been an unwelcome issue for many of our smaller clients to consider at a time when staying in business is their primary objective.
We are pleased that the DWP has recognised that a balance needs to be struck between the needs of the country in encouraging greater savings and the ability of small firms to administer this scheme on behalf of the government.”
Of course businesses still have to prepare to implement their pension scheme. Lewis Smith & Co. has the expertise and resources to help make this happen easily and cost effectively.
For advice or help on your company’s pension arrangements call us on 01384 235549 or email info@lewissmith.com today.
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