PENSIONS BILL

I see the government is going to bring in compulsory employer contributions to pensions schemes .
Have you any idea of the level of contributions that small businesses will have to pay
Will it apply to all employees or will there be something such as an age limit (say over 30) and a minimum period of service such as 2 years.

This measure could have a huge impact on small businesses.
I'm surprised there's been so little comment on it.

Robin Wishart
Lowland Accountancy, Chartered Accountants
34 Great King Street, Dumfries, DG1 1BD
Tel: 01387 255159

Extract taken from Governmetn web site:

PENSIONS BILL

The purpose of the bill is to:

Automatically enrolling eligible individuals into personal accounts will tackle the current behavioural barriers to pension saving, such as inertia, and the difficulty of making the right choice; individuals will have the right to opt-out.
The introduction of a minimum employer contribution will improve incentives to save and increase pension participation.

The main elements of the bill are:

Powers to set up the personal accounts scheme;
Powers to introduce mandatory employer contributions into a qualifying pension scheme, and to require the automatic enrolment of eligible employees into qualifying schemes;

Robin Wishart