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The auto enrolment of pensions is to be delayed for the UKs smallest businesses, giving them more time to prepare. Auto enrolment pension’s implementation will now be introduced over a period of five years, with completion by 2017.
October 2012 will see some of the largest companies in the UK enrolling employees into company pension schemes automatically. According to the government, the initiative will provide access to a company pension for up to 10 million people, for some of them it will be their first pension scheme. The scheme plans for the largest companies to enrol their employees initially, until all UK companies have enrolled employees by 1st April 2017.

Companies which have 250 employees or more will enrol between 1st October 2012 and 1st February 2014. As smaller businesses are facing a challenging time, in the face of the economic difficulties, the DWP has agreed to let small businesses introduce the scheme gradually. Companies with between 50 and 249 employees have to enrol workers by 1st April 2015. Businesses with between 30 and 49 employees will enrol between 1st August 2015 and 1st October 2015, while businesses with less than 30 employees will be able to enrol between 1st January 2016 and 1st April 2017.

Any businesses which start trading between the months of April 2012 and September 2017 will be given dates to enrol any time from 1st May 2017 and 1st February 2018. The new scheme means that all workers who qualify will be enrolled into the company pension scheme automatically, and will have to opt out if they don’t wish to join the company scheme.

About The Author

Kara Copple

An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.

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