Increase of automatic enrolment contributions – how will this affect your pension?

August 21, 2017   //   No Comments

The Pensions Regulator has advised that the minimum contributions that you and your staff pay into your automatic enrolment workplace pension scheme are increasing. This is also sometimes known as phasing. It is your responsibility to make sure these increases are implemented.

Minimum contributions are increasing in two phases. The first increase must be in place from 6 April 2018 and the second from 6 April 2019. It applies to all employers with staff in a pension scheme for automatic enrolment or are using an existing scheme.  owever, you don’t need to take any further action if you don’t have any staff in a pension scheme for automatic enrolment or you are already paying above the increased minimum amounts.

Additionally, if you’re using a defined benefits pension scheme then the increases do not apply.  Find out more here on the Pensions Regulator website.