Automatic enrolment aims to increase workplace pension saving in the UK. As of March 2015 all employers with 50 or more workers have implemented automatic enrolment. Now its the turn of the smaller employers. Between June 2015 and February 2018 all employers with 49 or fewer workers will be implementing automatic enrolment.
A report has been published by the Department for Work and Pensions which looks at the statistics so far.
Number of workers signed up: Up to the end of September 2015, more than 5.47 million workers have been automatically enrolled into a workplace pension by over 60,000 employers.
Opt out rates: Up to the end of August 2015, 10 per cent of automatically enrolled workers have opted out and a further 3 per cent of automatically enrolled workers have ceased active membership.
Employer awareness, understanding and activity: Surveys of employers two months before their staging date have consistently reported high levels of awareness and understanding, showing appropriate levels of preparation by these employers for automatic enrolment and complying with their duties. There were significant increases in understanding of automatic enrolment since autumn 2014. Among small employers it rose by 9 percentage points to 59 per cent and among micro employers by 14 percentage points to 48 per cent.
Impact on employers:Across all employers that had staged up to August 2015, the total median cost of implementing automatic enrolment was £500. Employers tended to say that the most work came from communicating the reforms to workers, as well as ongoing administration of the pension scheme.
If your staging date is coming up and you need some advice on the process then please do get in touch.
This report follows the automatic enrolment evaluation reports for 2013 and 2014. It brings together the latest evidence to show what has happened since automatic enrolment began and updates the indicators we will use to monitor progress throughout implementation.