Company Pension Contributions
Company pension contributions are not currently a legal obligation, and may vary from business to business. However this is set to change, as the law will soon say that any company must offer eligible employees company pension contributions at a minimum of 3% of pensionable earnings.
From 2012 changes to the law will be phased in, meaning that by the end of that period even the very smallest company must offer a suitable pension scheme and minimum in company pension contributions. Auto-enrolment will also be introduced during this time period, but employees may choose to opt-out of any pension scheme that is introduced.
If you have less than five employees:
You are not yet legally obliged to make pension contributions or to offer a pension scheme, although you may choose to do so. You will be subject to changes in the law on making pension contributions.
If you have more than five employees:
Your company must already offer employees the opportunity to opt-in to some form of pension scheme, whether a company pension scheme, a stakeholder pension, or a personal pension, although you do not yet have to offer company pension contributions.
We recommend that you check that any pension scheme that you already have is fully compliant with coming changes to the law on company pension contributions and other pension issues.
If you do not already have a suitable company pension scheme, now could be a good time to start thinking about setting one up and to start budgeting for possibility of company pension contributions.
For a free consultation and to receive impartial advice on employer pension contributions, and finding the right pension scheme for your company needs, contact a member of an independent company pension advice team.
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