All sorts now happening in the wonderful world of pensions. Firstly TPR have stepped up their spot-checks but I am unable to find out how many have actually occurred nor can I establish any hard facts about what they have discovered.
If you have been subjected to such a thing please let me know – I am curious to say the least.
Percentages go up in April 2019 to 5% employee and 3% employer (some variance to this if you are using a certification for pensionable earnings). Please warn employees that this is happening. We will automatically uplift on payrolls where required.
Approach with caution
Be aware, for anyone already paying the new statutory minimum we will not uplift unless you request it.
We have had a few enquires about employees that do not want to increase their contributions (called opting-down). In this scenario, the pension fails to be compliant under the law and as such will be treated as them ceasing membership of the AE scheme.
Some schemes may allow them to contribute on a voluntary basis but we would not recommend that you make any contributions in this scenario. It could be interpreted as you encouraging staff to cease membership. So proceed here only with caution and advice.