Workie The Workplace Pension TV Character

Workie The Workplace Pension TV Character.

This evening sees the launch on our television screens of yet another marketing character.  "Workie" is the new character developed by the government to promote workplace pensions and auto enrolment.

Workie is the new mascot for the campaign and is designed to raise awareness of the coming opportunity for millions of employees working for smaller companies to be able to join and pay into a workplace company pension.  Time will only tell whether we get fed up with "Workie", after all many of us may already be fed up with work

Many people who work for larger employers will already be aware of workplace pensions.  The government introduced new rules in 2012 meaning that all employers with two or more employees must offer a pension scheme to their workforce.

In 2012 this started with larger employers and has been gradually phased in for different sized employers and now through into late 2015 and into 2016 and 2017 all smaller employers with less than 30 employees will be required to offer their qualifying employees access to a workplace pension in which both the employer and the employee must pay in.

Single employee firms

If you are a sole trader or a single employee (yourself only) company you can apply for an exemption.  Contact us for a free template letter to send to The Pensions Regulator.

The key dates and contributions are below:

Minimum Requirements for Workplace/Auto-Enrolment Pensions - Summary

Eligible Workers: eligible for tax relief if they’re under age 75 and:

• they have UK earnings that are subject to income tax for the tax year
• they’re resident in the UK at some time during the tax year
• they were resident in the UK at some time during the preceding five tax years and when they joined the pension scheme.

Aged 22 to State Pension Age

• All eligible workers earning £10,000 pa must be automatically enrolled (they can then opt out if they wish within 30 days)
• Non eligible worker earning over £5,824 up to £10,000 pa can ask to enrolled and IS entitled to Employer Contributions
• Non-eligible worker earning below/up to £5824 can ask to be enrolled but NOT entitled to Employer Contributions

Below Age 22 or over State Pension Age

• Non eligible worker earning over £5,824 can ask to enrolled and IS entitled to Employer Contributions
• Non-eligible worker earning below/up to £5,824 can ask to be enrolled but NOT entitled to Employer Contributions

The numbers

Over the next year or so nearly 1.8 million small employers will have been required to establish a workplace pension.  As far as larger employers over the last three years, 61,000 employers have been required to either have their existing pension scheme be approved because it exceeds the minimum workplace pension requirements, with nearly 5.5 million workers having been automatically enrolled in the pension and it is estimated by government that a further 3.5 million workers will be enrolled in pensions via smaller employers over the next year or so.

What should I do?

As an employer you will need to register a scheme shortly to ensure that you are ready to roll out the pension to all employees at your "staging date".  You need to take action now.

For employees, if you are automatically enrolled because you earn more than £10,000 per annum, you do not have to join the pension scheme if you do not wish to.  You will have been automatically enrolled but you have the option to "opt out" within 30 days of being automatically enrolled.

Over the coming months you will see much of "Workie" where the general message is do not ignore the chance to join your workplace pension and start saving towards your retirement.  The government even have a hashtag #DontIgnoreIt to try and promote the same within social media.

If you want to know more about workplace pensions either as an employer or employee please contact us.