Starting from October 2012, employers must enrol their employees into a Workplace Pension, if they meet the criteria below. As an employee, when you pay into your pension, your employer and the government will contribute too.
A Workplace Pension is a way of saving for your retirement arranged through your employer. It is sometimes called a ‘company pension’, an ‘occupational pension’ or a ‘works pension’.
Your employer will enrol you into a Workplace Pension if you:
- are not already in a pension at work
- are aged 22 or over
- are under State Pension age
- earn more than £8,105.00 a year
- work in the UK
Your employer will write to you to explain how the changes affect you.
You can choose to opt out of this pension, if you want to. But if you stay in you’ll have your own pension, which you get when you retire.
If you’re already in a pension at work and it meets the government’s new standards, this will not affect you.
To find out more about how Workplace Pensions will affect you, and in particular, how they affect your payroll and how we manage the changes as a payroll service provider, Click here to get in touch. We’ll be happy to answer your questions.