New pension regulations are set to affect charities

News from WCVA

From October 2012, all employers – including charities – will be legally required to offer a workplace pension to employees and make a contribution.

From that date, all eligible jobholders you employ must automatically be enrolled into a qualifying pension scheme – then be told about the enrolment and given the opportunity to opt out.

You will be required to pay employer contributions of a minimum of three per cent of the worker’s earnings. You’ll also be required to register with the Pensions Regulator and inform them of the details of your scheme and the number of people you have enrolled.

An eligible jobholder is classified as a worker who earns over the minimum wage threshold, works in the UK and is aged between 22 and the state pension age.

You can find out more about the new requirements at the Pension Regulator website – including whether your group’s pension plan already counts for qualifying scheme status – at www.tpr.gov.uk/qualifyingscheme. WCVA has also issued some guidance, which is available at http://www.wcva-ids.org.uk/wcva/1103.