Guide to the Pensions Act & Auto-Enrolment

Guide to the Pensions Act & Auto-EnrolmentPensions Act Explained

The act has been designed to ensure that eligible employees find it easier to save for retirement. The government introduced new legislation on 1st October 2012 and it decrees that employers have to make a contribution to their staff’s pension fund. Employers’ duties come into effect over a period of 5 years and depend upon the size of the company.  The staging date for Focused Umbrella was 1st August 2013.

Auto-Enrolment Explained

Auto-Enrolment is the key to the Pensions Act whereby the legislation demands that all eligible employees are automatically enrolled into a company pension scheme.  Employees will have the right to ‘opt out’ of the scheme, but only after they have made a contribution; however employers must not discourage employees from joining the scheme or provide any unsolicited ‘opt out’ information or forms.  Current feedback from employers suggests that opt out rates are far lower than initially anticipated.

Agencies Responsibilities

Under this legislation all agencies operating in the UK must introduce a qualifying pension scheme no later than their staged date. This will require you to contribute 1% of an employee’s gross taxable earnings into the pension fund.

The agency have to automatically enrol all qualifying staff when they turn 22 whilst also monitoring earnings to ensure your scheme meets to minimum contribution levels. The agency must collect all contributions and forward them onto your chosen pension provider.

You will also be required to update your contracts or employment to reflect the new legislation and process all those employees who chose to ‘opt out’ of the scheme and make the appropriate refunds.

How can Focused help you?

From 1st August 2013 Focused have offered all of our employees access to our auto enrolment pension scheme:

  • Focused automatically enrol all qualifying staff and make payments into the NEST Pension Scheme.
  • Focused will fund the 1% employers contribution to the pension scheme at no additional cost to you, providing you with an immediate margin gain opportunity against PAYE temps, where you will be responsible for the 1% contribution.
  • Focused provide employees with comprehensive information packs that will, explain the benefits of this new arrangement
  • We manage the admin heavy task of employee opt outs and refunds of contributions.

If you have any queries please contact your Account Manager on 01732 897 549.


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