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auto enrolment - non eligible employees

david1mason
david1mason Posts: 2 Newbie
I run a small business and have 2 part time employees, one over retirement age. I do not operate a pension scheme at all. Neither employee qualifies for auto enrolment and I am just about to write to them but I understand that either of them could ask to join a pension scheme and I would have to set one up for them regardless of their auto enrolment status? If so, does this also apply to the employee who is over retirement age?

Comments

  • *~Zephyr~*
    *~Zephyr~* Posts: 612 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    edited 14 April 2016 at 11:27AM
    Yes, it applies to everyone up to the age of 74 and you must have a scheme set up for if any of your employees ask to be enrolled in the scheme.


    If they earn less than £5,824 you don't need to make employer contributions if they do ask to be enrolled.

    This is all fore-front in my mind right now because my staging date is coming up and I'm in the process of setting our scheme up!

    When is your staging date?
  • coming up very shortly. I had posted the same question on contact forms for the pension regulator but had received no response
  • *~Zephyr~*
    *~Zephyr~* Posts: 612 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    Yes, I didn't find them to be very forthcoming either.

    It's relatively simple and you'll find that some of your local IFA's will have set up an A-E facilitation service that can take the pressure off. It might be worth looking into that.

    Just make sure you don't miss the staging date - the Pensions Regulator can and IS applying fines. A fixed penalty of £400 plus further uncapped fines.
  • You don't need a pension scheme if you don't have any eligible employees.
    You must inform your staff that you have assessed them and give them the option to join a pension scheme and then if they stay yes at that point you can set a scheme up.
    When you do your Declaration of Compliance you just say total staff = 2 number enrolled 0 number of other employees 2. It does not ask you for any pension details unless you say you have enrolled someone
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