Prepare for Auto Enrolment Changes

2018 provides an opportunity for all employers to review the arrangements they have made with regard to Auto Enrolment suggests David King, Wealth Management Consultant at Mark J Rees.

First of all, the minimum contributions that need to be paid will increase from 6th April. For many employers, the Auto Enrolment pension arrangements currently receive contributions totalling 2% of earnings above a threshold level, with these contributions being split equally between the company and employees. From April, the minimum contributions will increase to 5% of earnings above the threshold, with the company/employer having to pay at least 2% of the contribution. This is a direct cost increase to all employers. Whilst employees will have been notified of the forthcoming increases, it is important to make sure that employees are notified appropriately.

Secondly, Auto Enrolment commenced for many employers during 2015 and the regulations require the arrangements to be reviewed every three years. The company/employer will need to re-assess all employees within a period 3 months either side of the third anniversary of the original Staging Date; where employees have opted-out of the pension scheme, they will need to be re-enrolled into the pension scheme, and further information explaining their rights will need to be provided. A further Declaration of Compliance will also need to be completed and submitted to the Pensions Regulator.

It also makes sense for all employers to review the Auto Enrolment arrangements that have been made, both with regard to the provider selected as well as the structure of the arrangements made for employees.

If you would like any further guidance as an employer in the area of Auto Enrolment then please email

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