If you have employees and you are thinking of setting up a work place pension for your employees then you should think carefully and fully research your options That are out there in the UK market at the moment.
Workplace pensions is a consideration That needs to be well thought out because if you choose a workplace pension that is nit eh best fit for your employees then it could backfire later down the road.
Having a good work place pensions is essential and very important because it will allow your ergo build up their retirement pension fund and will help your employees to have a decent pension pot for when they retire. Also by looking after your employees and giving them confidence that you are looking after their retirement in interests can really help productivity and get the best out of your employees which can then also help your company performance.
How do you chose the right workplace pension?
Now when it comes to closing the right provider for your workplace pension this can be difficult and not a easy task. Since auto enrolment was introduced a while back now more and more pension providers are offering workplace pension opportunities and offering workplace pensions of their own.
The pension law which is known as the the PENSION ACT 2008, all of your employers must look after their employees by setting up and providing a pension scheme and make a contribution to it. It’s worth noting that it’s not only established companies, for example if you are employing staff for the first time then it’s your responsibility to also comply to the pension law also.
If you have any employee that is aged at least 22 years of age and that person earns over £10,000 a year then they must be placed on an auto enrolment. If you don’t correctly set this up you will face fines from the pension regulator and on top of the fines you could also end up paying backdated payments from the exact date your employee started working at your company.
If you need any help or further information the Pension Regulator has a free tool that you can use.
Do you know what auto-enrolment is?
Auto-enrolment is a pension scheme that was introduced and set up UK government. The auto enrolment pension scheme is when employees are placed automatically into this scheme and then a percentage or version amount of employees wages is added to their pension scheme. Once this certain percentage of wages as been placed into the scheme an extra percentage is then laid by you the employer.