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Julie Page HR Ltd – Newsletter November 2012

This month I have asked my Financial Adviser, Rob Coote, to offer some words of advice about the new Pension Regulations and Auto Enrolment. Rob is an independent Financial Adviser and works with some of my clients assisting them with their Pension Provision. 

I hope you will find the following information useful and would recommend you contact either Rob or myself if you would like further information or assistance.

You may have heard that with effect from the start of October 2012 new pension rules have been introduced.  These rules are designed to ensure that all employers offer a ‘workplace pension scheme’ and that all employees are automatically enrolled into this scheme (with the option to opt out if they wish).   The new arrangements are being phased in over the next few years with the timescale set being dependent on the number of eligible employees e.g. employers with more than 120,000 eligible employees have to join in October 2012, while smaller employers with less than 30 eligible employees are due to join from June 2015. 

Work-based pensions are being reformed to encourage more people to save for their retirement.  Employers will be required to automatically enrol eligible employees into a “qualifying pension scheme”.  This could be a company scheme if it meets certain criteria or a low cost alternative by another provider, such as the National Employment Savings Trust (NEST).

Eligible employees

Employers are required to provide a minimum level of pension saving to employees who are:

Aged between 22 and State Pension age.

Earning a minimum of £8,105 pa (to be reviewed annually).

Employees between ages 16 and 21, or over state pension age but under 75 can ask to be enrolled and employers will have to pay contributions. 
Employees under the minimum qualifying earnings can ask to join the pension but employers will not have to contribute.


The minimum contributions will be phased in, but from 2018 will be:

Employer 3%
Employee 5%
Total 8%


Employees will receive basic rate tax relief on their contributions reducing the net cost to 4%.

These contributions are based on a band of earnings known as qualifying earnings between £5,564 and £42,465 – these figures apply to the 2012/13 tax year and will be reviewed each year by the government.


Membership of a pension scheme must be automatic and employees will not have to do anything to join.  
An employer can choose to automatically enrol an employee immediately or choose a date up to three months after their joining date.

If you want to find out any further information as to how these changes will affect you and/or your employees please feel free to contact either myself  via my website or telephone, 07776 135350 or Rob Coote from 2plan wealth management on 0207 193 9325 or

Julie Page, an experienced HR & Training Specialist, works with companies of all sizes to ensure they work with Employment Legislation, Best Practice and their own aims and objectives to maximise their business potential through their staff.

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