Between January 1, 2016 and April 1, 2017 employers with fewer than 30 members is required by law to automatically enrol eligible employees in a workplace pension scheme. This will affect small businesses of all sectors, including 1,800 based in East Lothian. Employers must enrol any employee aged between 22 and the State Pension age, earning at least £10,000 a year and working in the UK.
Setting up automatic enrolment can be incredibly complex, even for large companies, and small businesses are just as busy and often have less experience of running a pension scheme. Pension Solution was created by the Pensions and Lifetime Savings Association (PLSA) for small businesses, in order to help them through the automatic enrolment process.
Joanne Segars, Chief Executive, Pensions and Lifetime Savings Association, said: “Automatic enrolment will ensure that hundreds of thousands of employees in small businesses in East Lothian can access a workplace pension scheme – some for the first time. So far automatic enrolment has been a great success, but it’s important that employees of companies of all sizes can share in this success because workplace pensions are a great way to save for a good income in retirement.”