Plan ahead for statutory pensions
Published: 25 March, 2011
LONDON: B&CE, provider of financial benefits (including pensions) to the construction industry and allied trades, today called on the industry to start making provisions for the forthcoming pension reform, set to come into effect (on a staged basis) from 1 October 2012.
This date signals the start of the government’s new compulsory employer duties, which require all employers to automatically enrol all eligible employees into a qualifying pension arrangement, such as B&CE’s workplace pension EasyBuild, as well as make contributions towards it.
It is estimated that over 1.2 million people working in the construction industry will be enrolled into a workplace pension. This will potentially have a significant financial impact on the industry and is an unprecedented amount of money for many employers to have to realise.
The changes are being implemented from October 2012 over a period known as staging (based on the size of your workforce) and by September 2016 all employers will be legally required to:
- Enrol their employees automatically into a qualifying workplace pension scheme such as EasyBuild
- Pay a minimum contribution of 1% of band earnings into this scheme from their staging date, rising to 3% from September 2017
- Keep records relating to pension arrangements, the enrolment of members, salary and contribution histories and members’ opt out and opt in notices
- Every three years automatically re-enrol employees who choose to opt out