The Pensions Regulator has published information about proposed workplace pension changes that are due to be phased in from next year.
Workers who will need to enrol in the new workplace pension arrangements unless they expressly choose to opt out are:
* Employees who earn more than the minimum earnings threshold (to be announced), and
* Are aged between 22 and state pension age, and
* Work in the UK.
Each employer will be given a date from which changes will have to be in place. This will be known as the staging date. Larger employers will have the earlier staging dates. The staging dates will begin in October 2012 and continue through to 2016.
Readers may find the following notes useful:
* Find out what your likely staging date will be at www.tpr.gov.uk/staging
* The employer will be required to contribute at least 3% of worker’s earnings.
* Employers and workers will be required to make a contribution such that the minimum, combined contribution is 8%.
* Employer and workers will qualify for tax relief on their contributions.
* Existing pension arrangements may qualify; you will need to check with your pensions advisor.
More general information on the changes is available at www.thepensionsregulator.gov.uk/pensions-reform.aspx
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