Compulsory Employer Pension Scheme Deadlines Approaching Fast

The recent change of Government has seen no change in policy regarding the need for every employer in the UK to provide and contribute to an approved pension scheme arrangement.

At this stage there looks like there will be no exemptions.

"In the age of so called "pensions simplification" the new regulations set out 43 deadlines that every employer must meet over the coming months and years" says Jon Moore, Director of Clive Owen's Wealth Management and Financial Planning department. He goes on to say "Having an existing scheme for employees may well not protect employers from being fined up to £10,000 per day, and it is estimated that up to 69% of existing schemes will fall foul of the new regulations".

These new rules will add a significant additional cost burden to both balance sheets and to what each employee receives in their pockets at the end of the month. Eventually all employers will need to pay a minimum of 3% and employees 5% (gross) into their approved schemes.

"The key to dealing with these huge changes successfully is to plan early and get your approved scheme in place well before the myriad of deadlines draw close" advises Nicola Bellerby, Partner at Clive Owen & Co LLP. "Don't panic, but don't bury your head in the sand either, hoping that the new rules won't apply to you, they will!!"

For specific information about how the new rules will affect you, or to review your existing scheme arrangements contact Jon Moore at the Darlington office.

Updated 01/07/2010

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