Pension Reforms 2012 - What are the implications on Employers?

This week I have had a lengthy chat with a fellow professional about the much talked about Pension Reforms. As we know the Government is proposing to bring in new laws from 2012 that will have a significant impact on every employer in the UK.

What are the key points?

The framework for these new laws is already in place in the shape of the Pensions Act 2008.

• Employers will, for the first time, be required to automatically enrol eligible employees into a pension scheme.
• Employers will, for the first time, be required to pay pension contributions for any employees who join and stay in the pension scheme.
• The Pensions Regulator will police and enforce these new laws.
• Even if you have an existing workplace pension scheme, you may have to make changes so that it complies with the new laws.
• Employers can either use their own pension scheme to comply with these new laws or rely on a Government built scheme - the National Employment Savings Trust (NEST) scheme.

What did we conclude?

• 80% of all pension schemes in the UK are not fit for the new legislation in their current format
• That any employer should at least get initial advice even if they plan to do nothing in the short term
• In many cases time is not on the employers side
• Its so important for employers to be aware of their position and plan for any future action, as these will have may huge implications on budgetting & staffing
• There are large concerns that the industry will not have the capacity to deal w
  ith the huge rush to get schemes set up, therefore being ahead of the game would ensure you would met the legislative requirements in time.  

How can Reeves Independent Help?

Reeves Independent has set up & administered a large number of group schemes of varrying sizes throughout the last 20 years and therefore fully understands the challenges that businesses face.

We can:

• Help you review your existing workplace pension scheme to make sure it will comply with, or exceed, the new requirements

          or

• If you haven’t got a pension scheme yet, we can help you put one in place.
• And we can help with arrangements such as salary exchange that can save you money and offset the impact that these new laws will have on your business.

Here at Reeves Independent we would urge any employer to get some FREE initial advice! Contact the office NOW on 0191 281 9862 or e-mail info@reevesifa.com

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