Manufacturers called to act early over pensions

The Pensions Regulator has urged medium sized employers – including those in the manufacturing industry - to prepare for the upcoming changes to when automatic enrolment duties apply.

Medium sized businesses are expected to make the changes over the coming months, following nearly three thousand larger employers across the UK who have already automatically enrolled around 1.9 million workers into a workplace pension scheme.

Medium sized employers will reach their staging date in early spring and summer of next year, with manufacturers making up a large number of these employers.

Charles Counsell, executive director of automatic enrolment at The Pension Regulator, warned employers against leaving it late as this can present complications,  such as limiting the choice of pension provider and risk non compliance, all which can prove costly.

“It is like a journey to work; if we all leave at the same time, at the last minute, we will struggle to get to our destinations on time,” he said.

“We do not want to see a bottleneck – with employers leaving it to the last minute to approach providers and advisers.  If employers plan in good time and make their arrangements early they will find their journey less demanding.”

The Pensions Regulator also advises that six months before a company’s staging date, employers should have identified a suitable, value for money pension scheme that will meet the needs of its workforce.

For more information about the changes and how to implement them, visit http://www.thepensionsregulator.gov.uk/employers/planning-for-automatic-enrolment.aspx