UK: Automatic Enrollment into Pension Schemes Required Starting October 2012

Starting in October 2012, the UK Pensions Act requires employers in the UK to automatically enroll certain eligible employees who are not otherwise in a workplace pension scheme into a workplace pension scheme by a specified date. The automatic enrollment requirement will be implemented in phases, with the requirement applying first to large employers (in late 2012 and early 2013) and then to medium and small employers in phases between 2013 and 2016. Eligible employees include employees who work or ordinarily work in the UK (under their contract) who are between age 22 and state pension age who earn above a current minimum annual salary of ?ú7,475. Those employees will be required to be automatically enrolled into a pension plan and receive contributions from their employer. More information on this new requirement is available here.