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Automatic enrolment – employers can start their scheme early

27 April 2012

TPR has set out the way that employers can start automatic enrolment early if they wish to do so.

The basic rules are:

  • The employer has been given a start date for automatic enrolment by TPR
  • The employer has contacted the scheme provider and reached an agreement to bring forward the start date
  • The employer notifies TPR at least 1 month before the early start date enclosing the information required by TPR
  • TPR will send an acknowledgment

Automatic enrolment what is it?

The government has introduced a new law to make it easier for people to save for their retirement.  It requires all employers to enrol their workers into a qualifying workplace scheme if they are not already in one.  At present, many workers fail to take up valuable pension benefits because they do not make an application to join their employer's scheme.  Automatic enrolment is meant to overcome this.

For the very large organisations the start date is initially 1 October 2012.  For smaller ones, the start dates are spread progressively, according to size, ending in April 2018.

All employers can elect to start early, from 1 July 2012, so long as they meet the rules.

To read more, please use the link below.

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