Increase to minimum contributions under A-E
For employer use only
Increases to minimum contributions under auto-enrolment
We’ve recently written to employers who have a qualifying or auto-enrolment scheme with Aegon, regarding auto-enrolment contribution increases, more commonly referred to as ‘phasing’.
The minimum contributions that must be paid into an auto-enrolment workplace pension scheme for employees will be increasing. This will affect employers differently and depends on your own circumstances. However, it’s your responsibility to make sure the minimum contribution requirements are met.
The increase will be effective from:
- 6 April 2018 (phase one)
- 6 April 2019 (phase two)
How we can help
You need to prepare for this as early as possible. To help you understand what action you may need to take, we’ve created a dedicated phasing webpage. It’ll provide you with further information on the increases, along with other useful information.
Informing your employees
The Pensions Regulator website has further information on phasing. They also have a sample letter you can use, or adapt as required, to communicate these changes to any employees affected by this change.
Your involvement is key to success
We strongly support the Government's principle of encouraging people to make adequate pension savings for themselves. Help from employers is critical to achieving this.
You have a responsibility to meet the legal duty to ensure that the correct contributions are paid, as required under your pension arrangements.
By not doing so you could negatively impact your employees' retirement pension and this could leave you open to legal action by The Pensions Regulator.