About > ABA Rules & Guidelines > Advice to Members > Auto-Enrolment Pension Compliance

Auto-Enrolment Pension Compliance

Even if you employ just one person, you must provide a Workplace Pension.

Every employer with at least one member of staff now has new duties, including putting those who meet certain criteria into a workplace pension scheme and contributing towards it.

This is called automatic enrolment. It’s called this because it’s automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme. But it’s not automatic for you. You need to take steps to make sure they’re enrolled.

To Whom Does it Apply?

Every employer with at least one member of staff
• who is aged between 16 and 74
• who works in the UK
• for whom you deduct income tax and National Insurance contributions from their wages. 
• NB The scheme includes temporary workers who fall in this pay band.
• Individuals can opt out of scheme membership, but employers cannot encourage job-holders to opt out.

When Will it Apply?

Large and medium-sized businesses have already had to comply. Compliance for small businesses (under thirty employees, so most ABA members) is being phased in between 2015-2017.

You can find exactly what date you need to make provision by entering your PAYE reference into this calculator: www.thepensionsregulator.gov.uk/employers/tools/staging-date
Failure to do so can result in fixed penalties of £400, and/or escalating daily penalties

How Much Will it Cost?

The minimum amount payable by employers is being phased in, starting at 1% and rising to 3% of staff’s qualifying earnings.
Contributions are only paid in respect of earnings in a defined band (currently £5,668 to £41,475).

Where Do I Start?

• You will receive a letter from The Pensions Regulator, asking you to nominate a contact, normally the proprietor or business manager. You will need to go to www.tpr.gov.uk/letter with your letter reference and PAYE reference. If you have received a letter but discarded it, you can contact AEsupport@autoenrol.tpr.gov.uk.

Please note, you may need to make your nomination very soon. The ABA Office date was 30 April 2015, with a staging date of 1 January 2017.

• If you don’t have a pension scheme that you can use for automatic enrolment, you will need to choose a new one.
• There are three main providers equipped to deal with the needs of very small businesses:

Nest www.nestpensions.org.uk
Now www.nowpensions.com
The People’s Pension www.thepeoplespension.co.uk

• If you already have a pension scheme that you want to use for automatic enrolment, it is your responsibility to ensure it is compliant.
• You must complete your declaration of compliance with the Pensions Regulator within five calendar months of your staging date. This is ordinarily done online at the government gateway using your usual login details.

A detailed guide to the new requirements can be accessed at the Pensions Regulator website: