Pension Changes April 2019

Pension Changes April 2019

Pension Changes April 2019

GET READY  –  BE PREPARED

Salisbury’s will manage this change for you if we currently process and manage your payroll and pensions.

If we don’t currently manage this for you, then you need to be prepared and make the necessary arrangements for this change.

As an employer you need to budget for the increase in the minimum employer contribution you will need to make.

You will also need to make your employees aware of the increases to the minimum contribution, and how it will affect their salary.

  • If you have eligible staff in an automatic enrolment pension scheme you will need to make sure that at least the minimum amount is paid by you and your staff into the scheme.
  • If you don’t have any staff in an automatic enrolment pension scheme, you don’t need to take any further action.
  Employer minimum contribution Staff contribution Total minimum contribution
Current rate: 6 April 2018 to 5 April 2019 2% 3% 5%
New rate: 6 April 2019 onwards 3% 5% 8%

What you need to do

It is your responsibility, under the Pensions Act 2008, to make sure the right minimum contributions are being paid for your staff. If you are already paying above the increased amounts, you don’t need to take any further action. You should also let your staff know about any increases being applied to their contributions.

In the new year, for current clients of Salisburys, we will have an employee communication available that can be handed to your employees. If required, this will need to be requested.

Your ongoing automatic enrolment duties

Remember, as an employer you have ongoing automatic enrolment duties. You still need to assess anyone who works for you each time you pay them and put them into a pension scheme if they meet the criteria for automatic enrolment, unless your staff have opted out.

For any assistance with these changes, existing pension administration, or any other payroll issues, please get in touch with our experienced team.