Pensions Legislation and Planning
As of October 2012 all UK employers will have to start offering employees a pension contribution scheme. These will be phased in, depending upon the size of the organisation, between 2012 and 2016.
From October 2012 UK employers will be required to automatically enrol employees into a 'qualifying workplace pension scheme'.
Between October 2012 and 2016, starting with the largest organisations, all UK employers will be required to contribute a minimum of 3% of each employee’s eligible earnings into a pension, assuming the employee does not "opt out". This is intended to incentivise them to start saving towards their retirement. Employees will need to pay a personal contribution of 5% (4% with a further 1% tax relief being added) to make the minimum contribution 8%. For further information please see The Pensions Advisory Service website.
Charities need to ensure that they are aware of the requirements and start to incorporate these figures into budgets and multi-year funding bids.
