Uckfield firm warns about impact of pension change

Unwary businesses could find themselves with a sharp increase in payroll costs if they don’t take action to prepare for the introduction of compulsory pension contributions.

The warning has come from a financial planning company, with offices in Uckfield and Worthing, which is gearing up to offer advice needed by companies in advance of a Government deadline for action.

Private Wealth Management has employed a consultant to specialise in this area, launched a website to help with fact-finding, produced an information pack for employers and is offering a voucher entitling businesses to a free initial consultation.

Director Mark Robinson said it was important for employers to act now and include pension contributions as part of pay packages for new employees or make them part of pay rises for existing employees.

Where firms don’t have their own qualifying pension scheme they will have to set one up or use a default Government scheme called the National Employment Savings Trust (NEST).

Mr Robinson said: “Employers who don’t prepare now could find themselves with a sudden increase in their payroll. We can advise of ways to avoid that scenario.”

NEST is due to start next year with automatic enrolment starting in October 2012.

The largest employers will join first and the smallest will join by September 2016.

Contributions from staff and employers will also be phased in.

Until October 2016 the minimum overall level of contributions will be 2% with 1% coming from employers.

From October 2016 to September 2017 total contributions will be 5% with 2% coming from employers. And from October 2017 the total minimum contribution will be 8% with employers contributing at least 3%.

To learn more take a look at the new website created by Private Wealth Management at www.employerpensionreforms.co.uk and register for the guide “Making Sense of Pension Reforms” or call the company on 0844 568 9990.