Workplace Pension Scheme

The Pensions Act 2008 means that all UK employers must provide eligible staff with a pension scheme and contribute towards it. There are no exemptions to this legislation and therefore clubs and RTCs, regardless of how many employees they engage, have a duty to provide a pension scheme.

By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.

The Government is rolling the scheme out in stages and the date your automatic enrolment duties come into effect is known as your ‘staging date’. You can find out your staging date by visiting the Pensions Regulator website; you will need your PAYE reference.

As employer you must automatically enrol employees in a pension scheme if they meet the following eligibility criteria:

  • They are aged between 22 and State Pension age.
  • They earn at least £10,000 per year.
  • They ordinarily work in the UK.

Employees must be automatically enrolled in accordance with your staging date.

Employers must provide all employees, regardless of whether they meet the eligibility criteria or not, with details of their workplace pension scheme.

Employees that do not meet the eligibility criteria are entitled to elect to be enrolled. As an employer you cannot refuse to enrol an employee.

Employers’ contributions are set by the legislation. The rate is currently 2%, rising to 5% in 2018 and 8% in 2019.

You do not have to contribute to the pension scheme if your employee earns less than:

  • £486 per month
  • £112 per week
  • £448 per 4 weeks

Employers are obliged to provide employees with certain written information and the Pensions Regulator website is an extremely helpful resource, containing template letters.

If you do not have employees who must be put into a pension scheme you still have other duties which include writing to all employees individually and completing a declaration of compliance.

The ‘duties checker’ tab on the website contains a list of 10 pension providers. One of these providers is NEST (National Employment Savings Trust) which was set up by the Government to provide pension schemes to small employers free of charge (i.e. there is no set up fee).

As an employer you are responsible for meeting your legal duties for automatic enrolment. If you do not comply with the legislation the Pensions Regulator may take enforcement action, including compliance notices and penalty notices (i.e. fines).

Government Consultation on Motor Insurance:

The UK Government is running a consultation on motor insurance. It is consulting on whether to change the law on motor insurance following a judgement made by the EU Court of Justice which ruled that any motor vehicle being used on land (even private land) must have third party insurance.

This consultation may well impact on clubs that use tractors (and indeed any other forms of motorised vehicle) that would not usually need to be insured to transport boats/equipment across private land/beaches. We would therefore urge you to respond to the consultation – which is open until 31st March 2017.