A workplace pension is a way of saving for your retirement that’s arranged by an employer. Some workplace pensions are called ‘occupational’, ‘works’, ‘company’ or ‘work-based’ pensions.
Contributions to the scheme are made by the employer, the employee and often the government through tax relief. The employer can choose which pension provider administers their workplace pension. The size of the workforce and level of contributions can influence which provider is used.
By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.
An employer must automatically enrol an employee into a pension scheme and make contributions to their pension if all of the following apply:
- They’re classed as a ‘worker’
- They’re aged between 22 and State Pension age
- They earn at least £10,000 per year
- They usually (‘ordinarily’) work in the UK (read the detailed guidance from The Pensions Regulator if you’re unsure).
While every employer has a legal duty to set up a workplace pension for their eligible employees, offering a high-quality scheme supports your position as a caring employer and can bring real benefits to your business, for example:
- You will help towards your employees having a meaningful retirement income and retiring when they would like to
- Pension contributions are tax deductible for corporation tax
- Pension contributions do not attract employer national insurance contributions
- It is an additional employee benefit and may influence an employee’s decision to join or leave your company
- The scheme can be customised to support the needs of different segments of the workforce
The following websites can provide further guidance on your duties and responsibilities;
For more detailed information and advice on your existing workplace or setting up a new workplace pension, contact us on 01603 760 866 or email@example.com.
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