Auto Enrolment Frequently Asked Questions - Part 2

By Mattioli Woods

05 Jul 2013

In the second Frequently Asked Questions, Paul Jackson of Taylor Patterson addresses the issues and uncertainties faced by clients in relation to auto enrolment.

Will all employees be auto-enrolled into a workplace pension?

The process started in October 2012, with the larger employers leading the way. An employer must enrol any employee into a workplace pension who: Meet the earnings criteria of £9440.00 a year (in 2013-2014) Ordinarily works in the UK Be 22 years of age or over Be under the State Pension Age Are not already in a qualifying workplace pension scheme If an employee does not meet the criteria above at the time when their employer begins the Auto Enrolment process they will be auto-enrolled when they meet the criteria. For example, an employee is 18 at the time, they will not be auto-enrolled until they reach the age of 22.

Why is Auto Enrolment happening?

Auto Enrolment has been introduced to try to help people build additional income on top of the state pension when they retire. People are reaching retirement having not planned for it and suffering a dramatic drop in their living standards.

In 2013/2014 the state pension for a single person is £110.15 per week. The introduction of Auto Enrolment will encourage people to start saving for retirement a lot earlier in life, making it less of a shock when they reach retirement. Auto Enrolment is something that an employee can opt out of – but for those who remain in the scheme they will have a pension scheme in addition to the State Pension when they retire.

How much will be paid into the Auto Enrolment scheme?

The government has set minimum contributions which employers and employees must make to the scheme. These minimum contributions are staggered over the next 5 years:

1st October 2012 - 30th September 2017 The yearly contribution will be 2% of qualifying earnings - with employers contributing at least 1%.

1st October 2017 – 30th September 2018 The yearly contribution will increase to 5% - with employers contributing at least 2%.

1st October 2018 onwards The yearly contribution will increase to 8% - with employers contributing at least 3%. The difference between the yearly contribution and the employer contribution is made up of employee contributions and tax relief from the government.

Latest news

1

University-led 4.9 million initiative to turbocharge North West England’s cyber ambitions The data immersion suite at Lancaster University

University-led 4.9 million initiative to turbocharge North West England’s cyber ambitions

20 Nov 2024

2

Staci UK earns Great Place to Work® certification, amid major expansion plans Staci UK Fulfilment teams

Staci UK earns Great Place to Work® certification, amid major expansion plans

20 Nov 2024

3

Harrison Drury merges with specialist Merseyside law firm John Chesworth, Adele Spence, John Osborne

Harrison Drury merges with specialist Merseyside law firm

20 Nov 2024

4

Better transport links are key if Lancashire is to drive up productivity Katie Day strategy director at Transport for the North

Better transport links are key if Lancashire is to drive up productivity

19 Nov 2024

5

Farleys strengthens Private Client Team with Preston appointment Katy Shakeshaft and Victoria Marsh from Farleys

Farleys strengthens Private Client Team with Preston appointment

19 Nov 2024

PC PrestonMacan GIF980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:00 - 16:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

Skills Bootcamp in Procurement - Cohort 2
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Seminars
15 Oct 2024 - 17 Dec 2024

Skills Bootcamp in Procurement - Cohort 2

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Blackburn & Darwen Youth Zone Quiz Returns for 10th Year!
Quiz Pic.jpg.jpg
LBV Hub Fundraisers
21 Nov 2024 - 21 Nov 2024

Blackburn & Darwen Youth Zone Quiz Returns for 10th Year!

Accrington Stanley Football Club, Accrington, BB5 5BX

17:00 - 20:30

Emergency First Aid at Work
Chamber Logo1.png.png
LBV Hub Seminars
21 Nov 2024

Emergency First Aid at Work

FGH Training, 3rd Floor, Storey House, White Cross Business Park, Lancaster, LA1 4XQ

09:00 - 05:00

SPARK The Apprenticeship Marketplace
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
21 Nov 2024 - 21 Nov 2024

SPARK The Apprenticeship Marketplace

University of Central Lancashire, Preston, PR1 2HE

09:30 - 13:00

NLP Diploma Foundations
nlp nov 24.png.png
LBV Hub Seminars
22 Nov 2024 - 24 Nov 2024

NLP Diploma Foundations

Unlocking Possibilities training venue, 166 Waterloo Road , Blackpool, FY4 2AF

09:00 - 17:00

Lancashire Business Day 2024
231124LBVLancashireDayEventweb 5782
Networking
22 Nov 2024

Lancashire Business Day 2024

Blackburn Rovers Football Club, Blackburn, BB2 4JF

12:00 - 17:00

CQI and IRCA Lead Auditor Training Course ISO 9001 – Quality Management Systems (QMS) - REMOTE
IRCA-Certified-Course.jpg.jpg
LBV Hub Webinar
25 Nov 2024 - 29 Nov 2024

CQI and IRCA Lead Auditor Training Course ISO 9001 – Quality Management Systems (QMS) - REMOTE

Via MS Teams Link - RKMS Group , Blackpool, FY4 2DP

09:00 - 17:00

Preston Freelancer Meet-Up
Freelancer-Meet-Up-Nov.png.png
LBV Hub Networking
26 Nov 2024 - 26 Nov 2024

Preston Freelancer Meet-Up

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:00

Chamber Breakfast Networking
Chamber Logo.jpg.jpg
LBV Hub Networking
27 Nov 2024 - 27 Nov 2024

Chamber Breakfast Networking

Lancaster Golf Club, Ashton Hall, Lancaster, LA2 0AJ

08:00 - 10:00

Kickstart Networking - End of Year Celebration
Gold White Simple Christmas Party Instagram Post (Square).png.png
LBV Hub Networking
29 Nov 2024

Kickstart Networking - End of Year Celebration

Esc CC, Clitheroe, BB7 2DA

17:00 - 21:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV118 Online Graphic
Subscribe now

Weekly news bulletin