An auto-enrolment scheme must:
Contributions to a banded earnings pension scheme are based on a band of earnings (between £5,564 and £42,475, using the figures for the 2012/13 tax year). The lower and upper levels for this band will change from time to time. Banded earnings include overtime and bonuses, not just basic pay.
As an example, the contributions for someone earning £20,000 would be based on £14,436 (£20,000 minus £5,564).
Contributions to a banded earnings scheme are based on a band of earnings (between £5,564 and £42,475, using the figures for the 2012/13 tax year). The bottom end of the band is called the contributions threshold (£5,564 in the example above).
You can choose to have a deferred period of up to three months for your auto-enrolment scheme. This would let you defer auto-enrolling staff between the date they first became eligible for auto-enrolment and the end of the deferred period.
The minimum amount a person needs to earn to be auto-enrolled. This will be set by the government and may be the same as the income tax personal threshold (£8,105 in the 2012-13 tax year).
NEST, the National Employment Savings Trust, is a new occupational pension scheme that will launch on 1 October 2012. It is open to any employer with UK employees but employers can choose another provider for their auto-enrolment scheme.
A scheme that doesn't meet the minimum contribution or benefit levels set by the government for qualifying schemes.
Contributions to a pensionable earnings scheme are based on earnings from the first £1. So for someone with pensionable earnings of £20,000 contributions would be based on £20,000. There is no upper earnings limit. Employers can decide whether to include overtime and bonuses.
The Pensions Regulator is responsible for making sure employers comply with the auto-enrolment regulations.
A pension scheme that meets or exceeds the contribution or benefit levels set by the government.
Salary sacrifice is a way of making pension contributions that could allow both employers and employees to save money. This is how it works:
Your staging date is the latest date by which you have to have an auto-enrolment scheme in place for your employees.
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