Auto enrolment pension update
Automatic enrolment, is a piece of legislation introduced by the Government in 2008 to encourage people to save into a pension after it was found that millions of UK citizens will have little to no pension savings when they retire.
In order to reverse this trend and encourage workers to save more, it was made compulsory for all eligible workers to be opted into a workplace pension scheme. Subject to eligibility criteria all employers must offer a pension scheme to their workers without discouraging or influencing them to opt out.
NOW Pensions will run, monitor and correspond with each entitled individual directly on behalf of Linsco Ltd.
Details on any qualifying criteria, amounts deducted and investments can be obtained through NOW Pensions.
Contributions are increasing to 3% in April 2018
Under auto enrolment legislation, minimum pension contributions are required to increase over time. This happens on set dates. Originally, auto enrolment minimum contributions were due to rise in October 2017 and again in October 2018.
These increases were pushed back by six months by the government and the increases will now happen on 6 April 2018 to a total of 5% of qualifying earnings of which 2% must be paid by the employer and 3% by the employee.
In April 2019 this changes again to 3%paid by the employer and 5% paid by the employee.
Should you wish to amend or query any pension related information, please contact NOW Pensions via their website or on telephone number 0330 100 3334