The funding of the employee's pension is normally an integral part of the remuneration package of long-term employees, as well as those of directors and other senior executives. Pensions not only offer long-term financial security for the employee and their family, but may also enable the employer to choose to terminate the employment contract by early retirement at little or no cost, without financial hardship to the employee.
Workplace pensions via auto-enrolment
Rules introduced in 2012 required employers who did not already offer their employees a pension arrangement to auto-enrol most employees into a workplace pension scheme. These lower-cost private pensions are intended to ensure that fewer individuals are reliant on the state pension, however, the individual employee can choose to opt out of the workplace scheme.
Employers must provide employees with information about workplace pensions and how they will be affected by them. On commencement of the pension scheme for their business they must enrol all eligible employees into the pension scheme, make contributions on their behalf,
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Web page updated on 17 Mar 2025 13:51