Employer Pension Contributions 2012
Employer pension contribution obligations are set to change from 2012. Changes in the law mean that employers will be obliged to offer a company pension scheme and pension contributions to every eligible job-holder.
As part of the new company pension law employers will be required to make pension contributions at a minimum of 3% , a level which can be phased in according to company size between October 2012-17. By 2017 all employers should offer pension contributions at the equivalent of at least 3% of pensionable earnings.
If you are an employee seeking advice on your pension options contact a member of an independent pension advice team for a free initial consultation.
Between 2012-17 every employer will be required to start offering a company pension scheme and auto-enrol all eligible employees. Employees may choose to opt out, in which case the employer is not required to make any contributions on the behalf of that employee.
For companies employing 30,000 or more, all eligible employees must be auto-enrolled by October 2012, with small and medium-sized companies being allowed a longer time-frame to introduce changes brought about by the new law.
If you are an employer seeking advice on dealing with imminent changes in the law on employer pension contributions, contact an independent company pension advisor for impartial advice.
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