Easter 2018 is not that far away…

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Today represents a return to the workplace for many after the Easter bank holiday break.  But with many eggs yet to be opened – let alone actually eaten – the Jelf Employee Benefits team are already looking ahead to the same holiday period next year.

Our foresight is not driven by a love of all things chocolate*, but instead a major change to the contribution requirements under pension Auto-Enrolment (AE) legislation.  This change will arise immediately after the 2018 Easter break.

From next April the legislation dictates an increase to both the Employer and Employee AE minimum contribution levels.  This represents a significant increase to both parties from the current base levels, and therefore planning, budgeting and communication will all be key areas for many companies to consider as this date approaches.  This may also mean that employers will need to include these extra costs and activities in their business plan during the current financial year.  For details of the minimum contribution levels from 2018 please see this link to The Pension Regulators Website.

Of course many organisations will already be paying more than the required minimum levels, and will therefore not be directly impacted by this change.  That said, there is likely to be some significant media noise around the minimum increases, so ensuring that your employees understand that there will be no change for them – whilst also driving home the message that their employer is actually paying more than that required by the AE legislation – will both be important communication missions for such employers.

Another Auto-Enrolment point worth noting is the continuing need (and requirement) for employers to undertake an Automatic Re-Enrolment process every three years.  This extra responsibility may be seen as rather onerous, but does present the sponsoring employer with a great opportunity to revisit their Auto-Enrolment decisions, and take corrective actions as necessary.  We wrote on this topic last year, and that post can be read here.

So our key message to all employers is to start planning for the AE changes post Easter 2018 right now.  For more information on these issues please speak to your usual Jelf Consultant.

Best regards

Steve 

*although that is a pretty good reason also!

Wellbeing at WorkInternationalProtection/RiskWorkplace Pensions and SavingsWorkplace Benefits Platform

 

 

 

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About the author

Steve Herbert is an award-winning thought leader on Pensions and Employee Benefit issues. His principal aim is better communicating the value and usage of employee benefits to employers. This he has achieved through many (highly successful) seminar series over the last decade, and his regular and widely read blog posts on the subject.
He also acts as a judge in HR and Employee Benefits industry awards, article writer, and product innovator. Steve is a regular contributor to DWP forums and compulsive responder to formal Government Consultations on pension and employee benefit issues. He is occasionally accused of making employee benefits interesting.