Automatic Enrolment Legislation Changes
Most people are now aware of automatic enrolment. Indeed many of you may already have been auto enrolled into your employer’s pension scheme. What you may not know is that, once in the pension scheme, your minimum contributions and your employer's minimum contributions will have to rise.
In the recent Autumn Statement further changes were announced delaying the timing of these rises. Originally due in October 2017 and October 2018, these increases will now take effect from April 2018 and April 2019. The amounts will differ depending on the scheme your employer is offering so, if you are unsure, contact your employer to see what is required and when. Of course if HDA are running your scheme just call!
The reason for the delay is the pressure on pension providers (in particular the State backed NEST scheme) that will arise from the many tens of thousands of ‘micro’ employers who have yet to reach their auto enrolment date, and also to give employers some relief before their costs increase.
It is always a good idea to check what your employer offers from a pension perspective to ensure you are maximising the benefits available to you.
For further information please contact us.