What do the changes mean?
They mean that employers now need to automatically enrol ‘eligible jobholders’ into a ‘qualifying pension scheme’. Eligible jobholders will only need to be automatically enrolled once they have completed up to three months’ employment, although employers could opt to enrol them before then. An eligible jobholder who wishes to opt in during the waiting period will have the right to do so and benefit from an employer contribution.
Once automatically enrolled, eligible jobholders will be able to opt out within a month, in which case they will be due a refund of any contributions taken.
Thereafter, employers must re-enrol them every three years, again with the opt-out provision.
We provide advice and assistance to employers to help them prepare for the upcoming changes.