Compulsory pensions
Compulsory pensions are being introduced in the UK from October
2012. Based on published legislation and draft legislation as at 6
October 2011. Over time they will affect all employers and all
employees. We will be adding a number of guides to help you through
the various implications of these new wide-ranging laws.
The employer’s duty to enrol all employees
automatically in a pension scheme is being rolled out in stages
based on size of employer. Employer size is calculated by reference
to PAYE payroll numbers as at 1 April 2012. The largest employers
will be obliged to enrol their staff in a pension scheme to which
they contribute from October 2012. Our briefing notes will set out
more detail on these duties and what constitutes a “qualifying
scheme” for compliance with them.
| Number of PAYE payroll employees at 1
April 2012 |
Staging
Date |
| 120,000 or more |
1 October 2012 |
| 50,000-119,99 |
1 November 2012 |
| 30,000-49,999 |
1 January 2013 |
| 20,000-29,999 |
1 February 2013 |
| 10,000-19,999 |
1 March 2013 |
| 6,000-9,999 |
1 April 2013 |
| 4,100-5,999 |
1 May 2013 |
| 4,000-4,099 |
1 June 2013 |
| 3,000-3,999 |
1 July 2013 |
| 2,000-2,999 |
1 August 2013 |
| 1,250-1,999 |
1 September 2013 |
| 800-1,249 |
1 October 2013 |
| 500-799 |
1 November 2013 |
| 350-499 |
1 January 2014 |
| 250-349 |
1 February 2014 |
Staging Dates for small or new employers
(Note: Individual dates will be published when the DWP publishes
its consultation.)
| Employer by PAYE scheme size or other
description |
|
Staging Date
From (inclusive)
|
Staging Date
To (inclusive)
|
|
| 50 to 249 |
1 April
2014
1 April 2015 |
| Test tranche for fewer than 30 |
1 June
2015 30
June 2015 |
| 30 to 49 |
1 August
2015 1
October 2015 |
| Fewer than 30 |
1 January
2016
1 April 2017 |
| Employers without PAYE schemes |
1
April 2017 |
| New employers who set up from April 2012 to March
2013 |
1
May 2017 |
| New employers who set up from April 2013 to March
2014 |
1
July 2017 |
| New employers who set up from April 2014 to March
2015 |
1 August
2017 |
| New employers who set up from April 2015 to December
2015 |
1 October 2017 |
| New employers who set up from January 2016
to September 2016 |
1 November 2017 |
| New employers who set up from October 2016 to June
2017 |
1 January
2018 |
| New employers who set up from July 2017 to September
2017 |
1 February
2018 |
| New employers who set up from October 2017
onwards |
Immediate
duty |
NOTES
Employers may choose to bring forward their
staging date but must give the Pensions Regulator one month’s
notice.
Employer size is based on the number of PAYE
payroll “employees” so could include pensioners depending on the
employer’s arrangements (and possible changes to the
regulations).
“New employer” means an employer who sets up a
PAYE scheme after 1 April 2012.
If an employer has more than one payroll
scheme the staging date for all employees is the
first one that applies.
This publication is not a substitute for
detailed advice on specific transactions and should not be taken as
providing legal advice on any of the topics discussed.
We also have a Financial
Services & Funds
Group advising on pension products and investment and custody
matters. Our
Employment Practice is also available to advise on service
contract or termination issues.