A pensions expert is warning employers with up to 90 workers that they must act now to be ready for auto enrolment.
Richard Jacobs says companies with less than 90 employees should already be planning for auto enrolment on July 1st , 2014.
Failure to have a plan in place will lead to severe penalties.
Auto enrolment is already underway for larger companies but experts believe many smaller companies are under prepared for the changes.
“It is important to prepare now for auto enrolment,” said Richard Jacobs, Managing Director of Newcastle-under-Lyme based Richard Jacobs Pension and Trustee Services Ltd. “Failure to comply could lead to penalties of up to £10,000 a day.”
“Employers will need a lead in time of around 12 months to set up schemes for the companies which become eligible for auto enrolment in April, 2014.”
“Companies must allow time for preparation work, for example it can sometimes be difficult to gather data on all staff and it may be unclear how to treat some workers, such as agency staff.
“There are also consultation requirements to consider where employers are making changes to pension schemes.
“Employers should plan ahead and seek advice on the options available. For example, leaving things to the last minute may mean they do not get the best deal in terms of management fees and that could have consequences in terms of how much money their workers will receive.”
Auto-Enrolment is being introduced gradually. The staging date for companies with between 62 and 89 employees on July 1st, 2014.
A full outline of staging dates can be found online at http://www.jacobs-pensions.co.uk/auto-enrolment.html
ENDS
For further information contact Richard Jacobs on 01782 557800.
Notes to Editors: Richard Jacobs Pension & Trustee Services Ltd was established in 1992 and operates from offices in Water Street, Newcastle-under-Lyme.
The company is run by Richard Jacobs, who has experience in financial services industry dating back to 1971, and Emily Jacobs a Director in the company and daughter of the founder.