There seems to be a lack of knowledge about the proposed Pensions Act 2008 and the new requirements it will impose on employers from 2012.

I know this is not an immediate problem but there are a few things that may need to be considered in advance:-

• Not all employers currently pay into pension schemes for their employees.
• Not all employees have joined the pension schemes provided.
• From 2012 all employees aged 22 and over earning more than £5,035 (in 2006/07 values) who are not in a workplace pension scheme with compulsory contributions from their employer will be ‘auto-enrolled’ into one.
• The responsibility for making this happen will rest with the employer.
• If an employer does not have a ‘Qualifying Workplace Pension’ scheme in place by 2012 they will have to ensure their employees are auto-enrolled into a default scheme that the Government is setting up.
• Employers who do not comply will be subject to ‘compliance notices’, ‘penalty notices’ and, quite possibly, fines.
• Employers will be compulsorily required to pay contributions of 3% of their employees’ earnings (between a lower and upper threshold) towards their pensions while they are members of ‘Qualifying Workplace Pension’ schemes.

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