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Step 3 Work out who you need to put into a pension scheme

You must do this at your staging date

On your staging date, you must work out how much each member of staff earns and how old they are. This will identify what you need to do and is known as 'assessing your staff'. You should use this information in order to complete your declaration of compliance.

1. Assessing your staff

Staff will fall into one of two categories…
Gross Earnings Age 16 - 21 Age 22 - SPA* Age SPA* - 74
Over £833 a month
(Over £192 a week)
Type 2 Type 1 Type 2
£833 a month or less
(£192 a week or less)
Type 2 Type 2 Type 2

*State Pension Age. If you are unsure what this is use the State Pension Calculator to find out.

Other things to consider

Employing staff on variable hours, contracts and pay

If you employ seasonal or temporary staff or you have staff whose hours and pay varies each time you pay them, you will still need to assess them to work out if they need to be put into a pension scheme.

More information is available to help you when assessing:

Postponement

You can delay 'assessing your staff' for some or all of your staff for up to three months. This is known as ‘postponement’.

Postponement does not mean that you are changing your staging date but simply changing the day you assess your staff’s age and earnings.

If you use postponement you must write to your staff to tell them what you are doing.

Find out if postponement is right for you.

2. Put staff into a pension

What do you need to do?

Having worked out what you need to do for each person you employ, it is now time to put those that you need to into a pension scheme.

You will need to give your pension scheme provider all the information that they need to initially set up your staff in the pension scheme.

Each time you pay your staff you will need to work out how much you both need to pay in and arrange for this to happen. Payroll software may help do this for you.

For full details contact your pension scheme provider.

Making contributions

Each time you pay your staff you will need to make contributions to their pension scheme. Find out more about making contributions to your pension scheme.

You must work out how much you both need to pay in and arrange for this to happen. Payroll software may help do this for you. For full details contact your pension scheme provider.

To do list:

  • Work out what you need to do for each member of staff
  • Send the details of staff who are being put into a pension scheme to your pension provider promptly
  • Start paying contributions into your pension scheme

What's next?

Now that you've put your staff in a pension scheme, you need to write to them to let them know.

Your staging date

confused man

Which type?

Easily work out which 'type' each member of staff falls into.

All you need to know is each member of staff’s gender, age and earnings.

Gender

Age on your staging date

Gross earnings

£

confused man

This staff member is classified as .

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