How Pension Auto-Enrollment Works
To save for retirement, there are many ways you can save and several types of pension plans. Workplace pensions are plans that are arranged by the company you work for. These workplace pensions take a percent of your paycheck and add it to a pension plan available to when you reach retirement. It's also common to see extra contributions from the government and employers. However, you will not be able to access any of these funds until you are at least the age of 55 because the government wants to make sure you are using the money to live on when you stop working.
While this is a very useful system, there are many workers who are not offered an employer pension plan or they don't sign up for the one at their office. To help keep this from happening more than it already does, the government is making a new policy about auto-enrolling in pension plans. This means that employers have to automatically enroll any of their eligible employees into their pension plan. Additionally, the law requires employers to add a separate contribution and be the ones responsible for all the details and paperwork.
While the law isn't yet in full effect, there will be stages where the big businesses will switch to the new system followed by the small employers. Every month more employers will be added under the umbrella of the new law until eventually everyone is included, in about six years time. If you are interested to get more information, you can go to http://www.ehow.com/how_5647261_calculate-pension-benefits.html. In the end, everyone down to even the single-employee businesses will be held accountable.
To meet the requirements for eligibility, an employee will have to be 22 or older and make a certain minimum amount every year. If anyone is not eligible, then the employer is released from the responsibility of enrolling them automatically into its pension plan.
Pension plans will require a minimum contribution based on a percent of the employee's pay, plus a certain portion of that that the employer must pay. It is permissible for the employer to add more than the minimum if they so desire. To help out businesses with this new cost, the levels of contributions are also being instituted in phases. Anyone who switches jobs will get enrolled automatically into their new pension plan. And for more information, please follow the link.
This can mean a lot of extra work for employers. If they do not have pension plans, they have to make them, and if they do not have auto-enrollment abilities, they will have to institute those. This auto enrolment survival guide will help employees by assuring them that they don't have to worry about enrolling themselves in a pension. They can also choose to leave a plan if they want to.
To save for retirement, there are many ways you can save and several types of pension plans. Workplace pensions are plans that are arranged by the company you work for. These workplace pensions take a percent of your paycheck and add it to a pension plan available to when you reach retirement. It's also common to see extra contributions from the government and employers. However, you will not be able to access any of these funds until you are at least the age of 55 because the government wants to make sure you are using the money to live on when you stop working.
While this is a very useful system, there are many workers who are not offered an employer pension plan or they don't sign up for the one at their office. To help keep this from happening more than it already does, the government is making a new policy about auto-enrolling in pension plans. This means that employers have to automatically enroll any of their eligible employees into their pension plan. Additionally, the law requires employers to add a separate contribution and be the ones responsible for all the details and paperwork.
While the law isn't yet in full effect, there will be stages where the big businesses will switch to the new system followed by the small employers. Every month more employers will be added under the umbrella of the new law until eventually everyone is included, in about six years time. If you are interested to get more information, you can go to http://www.ehow.com/how_5647261_calculate-pension-benefits.html. In the end, everyone down to even the single-employee businesses will be held accountable.
To meet the requirements for eligibility, an employee will have to be 22 or older and make a certain minimum amount every year. If anyone is not eligible, then the employer is released from the responsibility of enrolling them automatically into its pension plan.
Pension plans will require a minimum contribution based on a percent of the employee's pay, plus a certain portion of that that the employer must pay. It is permissible for the employer to add more than the minimum if they so desire. To help out businesses with this new cost, the levels of contributions are also being instituted in phases. Anyone who switches jobs will get enrolled automatically into their new pension plan. And for more information, please follow the link.
This can mean a lot of extra work for employers. If they do not have pension plans, they have to make them, and if they do not have auto-enrollment abilities, they will have to institute those. This auto enrolment survival guide will help employees by assuring them that they don't have to worry about enrolling themselves in a pension. They can also choose to leave a plan if they want to.