This postponement rule is important and often misunderstood – Whilst you can postpone contributions into a scheme for up to three months, you MUST still have a scheme in place at your staging date – this isn’t negotiable.
If you choose to postpone contributions, you MUST inform eligible employees within six weeks of the original staging date.
The caveat here is that employees need to have access to a scheme.
It is common and, arguably, logical that a company which finds its staff don’t want or intend to simply opt out of an auto enrolment scheme feels its obligations end there.
Truth – It’s understandable that some small businesses employing a handful of staff do not feel as though they have to offer AE.
Indeed, under the old stakeholder pension regulation, this only applied to businesses employing five members of staff or more but the new AE legislation takes a very different tack.
For as little as £15 pcm* companies, like ourselves, will set up and manage your auto-enrolment capability.The only caveat is if you are sole director with no employees.Truth – We’ve helped many companies that have simply put their auto-enrolment obligations off having been weighed down with day-to-day business activity.If you already have a pension scheme up and running, you will still have to ensure it meets the new AE rules.Put simply, an eligible employee is one aged between 22 and State Pension Age and earning over £10,000 a year.