Pension Reform
Watt Financial Solutions specialise in helping you understand the new requirements and building these into your business plans. Whilst the new responsibilities you face seem onerous there are many things we can do to minimise the costs and administration burden for you.

We would welcome the opportunity to discuss this in an initial meeting which would be at our cost. Please give us a call to arrange a mutually agreeable time.


People are living longer which means there will gradually be less working people compared to an increasing number of retired people.


So from October 2012 the Government are introducing new legislation to get more people saving for their future. This will mean that employers will have to automatically enrol certain employees into a pension scheme and make contributions on their behalf.


Automatic enrolment and the employer duties will be a big challenge for employers and they're likely to look to you for help. We want to help employers prepare for their new duties. Here you'll find the key facts about the employer duties and what they mean for employers and their employees.


When it's happening


The main employer duties are being introduced in stages from October 2012. Employers need to identify their staging date to determine when the duties first apply. This also sets the date for automatic re-enrolment.


The effect on pension schemes


Most employers will have to set up and contribute to a pension scheme suitable for automatic enrolment. Automatic enrolment schemes must meet three sets of criteria.


The effect on the workforce


Employers must assess their workforce to determine which type of worker they employ. Workers can be categorised as eligible jobholders, non-eligible jobholders or entitled workers.


Employer duties


Employers will have different duties depending on the types of worker they employ. They'll need to automatically enrol some workers into an automatic enrolment scheme and arrange membership of a pension scheme for others.


Keeping records


Employers will be responsible for the ongoing maintenance of the scheme and have an obligation to keep certain records. This includes information about their workers and the pension scheme which must be provided to TPR when requested.


The Pensions Regulator (TPR)


The new employer duties are not optional. TPR will ensure employers comply with the new duties. Although their approach will be to educate and encourage compliance, employers will face substantial fines or even imprisonment if they don't comply.


The National Employment Savings Trust (NEST)


NEST is a pension scheme that employers can use to meet their employer duties. It's aimed at low to medium earners and small employers.


The Department for Work and Pensions have now confirmed the key figures required for automatic enrolment and that certain European workers will not be covered by automatic enrolment.


Thresholds confirmed


On the 14th of June, a Statutory Instrument was made that confirms the earnings trigger for automatic enrolment and the qualifying earnings band for the 2012/2013 tax year.


These are:

Automatic enrolment trigger: £8,105

Lower qualifying earnings threshold: £5,564

Upper qualifying earnings threshold: £42,475

As expected, these figures have been aligned to tax and national insurance thresholds although there is no guarantee that they will continue to be linked in this way.

The publication of these figures now gives advisers and employers more certainty in calculating the costs of automatic enrolment.


More details on Auto Enrolment and staging dates etc can be found on The Pensions Regulator website.

For Investment Planning we make recommendations based upon the Whole of Market.

The levels, bases and reliefs of taxation are subject to change.

The guidance provided within this website is subject to the UK regulatory regime and is, therefore, primarily targeted at consumers based in the UK. This site does not confer any form of personalised financial advice, should you wish to receive specific financial advice please contact us.

Watt Financial Solutions has now merged with Riverpark Investment & Financial Consultants Ltd
which is authorised and regulated by the Financial Conduct Authority. 
Riverpark Investment & Financial Consultants Ltd is entered on the FCA register under reference 455480.
Donald Watt is Accredited by the Society of Later Life Advisers