Planning for the future is always a wise move. None of us know what will happen when we reach retirement age, but one thing we do need to know is that we will have a pension to fall back on. The law states that all employers must have a workplace pension scheme in place – the law was introduced in 2013 and all employers were bound to comply by February, 2018 – so how does a workplace pension operate?
The simple concept is this: the employee pays into the pension scheme by way of contributing a portion of his or her salary each month. The government also pays in, in the form of a tax relief scheme. It can be done weekly, if that is how the employer prefers. The employer is also bound to pay into the pension scheme. As from April, 2019, the contribution from the employer must be 3% of the individuals qualifying earnings, the employee 5%.
If this is all getting a little complex – and it can do if you are not an expert on pension schemes or an accountant – there is plenty of information available from the experts at Dartington Benefits that we recommend you take a look at, as they have already helped many businesses assess and perfect their pension schemes.
Assessing Suitability and Compliance
If unsure of the suitability of your pension scheme, it is worth letting the team at Dartington Benefits perform an assessment. They can also help with assessing the eligibility of employees, as some may not comply with the requirements of the workplace pensions regulations. Having the professionals look at your situation means that you will be sure to comply on all fronts.
Indeed, there is also a legal requirement for every employer to draw up a statement of compliance. This is a legal obligation and one that needs to be correct and suitable, or the employer could find they are facing a substantial fine for non-compliance. Once again, there are specific timelines associated with the declaration of compliance, so it is sensible to have one drawn up by those who understand what is required. Dartington Benefits have helped many businesses – large and small – with their assessment and statement of compliance, and will happily assist in ensuring yours is all present and correct.
Look to the Future
It is also important to understand that implementing a workplace pension scheme is just the beginning; every employer must remain compliant for the future, and as things may change – both with the size and scope of the company and with associated laws – having an independent adviser in the shape of Dartington Benefits on hand to help and advise makes life a lot easier.
If you have a workplace pension scheme in place and are unsure of its suitability – perhaps it was devised when the company was smaller and you have experienced growth – then get in touch now and one of the team at Dartington Benefits will be more than happy to help.