Work based pension

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Tom Smart

Free Member
Jun 10, 2015
54
6
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Hi all

Can someone please help me with my situation.

A few months ago I took on a trainee, he is on minimum wage and doesn't want any deductions from his wage to pay into a work based pension. No pressure from my end it was 100% his decision.

Aside from myself he is the only employee in the company, I also do not want to pay into a work based pension at this time.

On advice from my bookkeeper (outsourced) I had to set up a work based pension, otherwise I would have been fined £400. I never actually asked her to deal with this she kind of just took it upon herself and started writing to my employee on behalf of my company. Me, my employee or my employees mum who used to be a legal writer couldn't actually understand what the letter was saying and when I have asked my bookkeeper it's like talking to a computer generated programme.

My question is:

Do I have to have a pension scheme in place even if no one wants to use it?

I understand that should the time ever come when my employee wants a pension I must legally have one but my issue is as I can see it that I will need to make contributions to the scheme and I must also pay my bookkeeper extra each month to manage to scheme, I have already paid her £100 to set up the scheme.

It just seems a bit of aggro for something that neither of us wants.

Hopefully someone can help me. Thanks in advance.

Tom
 

Newchodge

Business Member
Nov 8, 2012
16,234
4,585
Newcastle
In that case, the law does not require you to do anything. Heis under 22 years old so not subject to auto-enrolment. I assume you have no other employees? The only thing you have to do, within 6 months of your staging date, is complete the Pensions Regulator compliance confirmation.

If he were 22 years old you would have to set up a pension scheme, write to him that he will be auto enrolled, auto-enrol him and then let him opt out if he wishes to.

In setting up auto-enrolment, the authorities were aware that a number of employers may do nothing and tell the Pensions Regulator that ttheir staff did not wnat to join. Without ever having discussed it with their staff or given them the option. So eligible staff must be auto-enrolled, even if they immediately opt out.
 
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Mr D

Free Member
Feb 12, 2017
28,619
3,551
Stirling
In that case, the law does not require you to do anything. Heis under 22 years old so not subject to auto-enrolment. I assume you have no other employees? The only thing you have to do, within 6 months of your staging date, is complete the Pensions Regulator compliance confirmation.

If he were 22 years old you would have to set up a pension scheme, write to him that he will be auto enrolled, auto-enrol him and then let him opt out if he wishes to.

In setting up auto-enrolment, the authorities were aware that a number of employers may do nothing and tell the Pensions Regulator that ttheir staff did not wnat to join. Without ever having discussed it with their staff or given them the option. So eligible staff must be auto-enrolled, even if they immediately opt out.


Government has dealt with businesses before. :)
 
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