Top Accountancy Firm informs staff about pension changes – because yours may not!

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A TOP Chartered Accountancy form is urging employers to inform staff about their increase in pension contributions from 6th April.

There is currently no legal obligation for employers to inform those in their auto-enrolment scheme about the change.

James Younger, a Partner at Saffery Champness in Edinburgh, said: “With a further percentage going into pension contributions this could mean a decrease in take home pay for some members of staff where they may not have had a pay rise in the last 12 months.”

Jamie Younger, Head of the firm’s Landed Estates and Rural Business Group and Partner.

The change will see the minimum contributions employers and employees pay into defined contribution automatic enrolment workplace pension schemes increasing from 2% to 3% for employers and 3% to 5% for staff contributions.

The changes do now however affect defined benefit pension schemes.

The Pensions Regulator has advised that the increase in the minimum contributions applies whether a new auto-enrolment scheme was specifically set up or whether an old scheme was adopted for the purpose of auto-enrolment.

 
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