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Auto-Enrolment Phasing of Contributions

As you are aware the minimum contributions under automatic enrolment will be going up in April 2019. It’s important that all employers are ready for this increase so that the correct contributions are deducted at the right time.

There are a number of steps and considerations employers need to take with regard to the phasing of contributions for auto-enrolment, such as the effective date of the change in contributions, payroll changes and (where applicable) the interaction of Salary Exchange with National Minimum Wage.

There are no additional duties under automatic enrolment for employers to inform their employees about the increase to contributions, but employers may wish to do so as this will help minimise queries and reduce the risk of some employees deciding to leave the pension scheme.

In addition to the above, don’t forget that where postponement is being used it is vital to ensure that your postponement communications are updated to reflect any new minimum contribution levels.

It is also important that where you are not using statutory minimums e.g. if you are using say basic salary or total earnings as your definition of pensionable pay to keep up to date your auto-enrolment certifications. These need to be done every 12 to 18 months.

Speak to us at Premier to find out more about how we can support you with your auto-enrolment responsibilities.

Jacqueline Hutton

Head of Client Management

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