Before 6 April 2018 you will need to take the following steps to make sure the increases are implemented. You will also need to repeat these steps before 6 April 2019.
You should allow plenty of time to put in place these increases.
1. Work out which increases apply to you.
2. Work out which staff it applies to.
3. Make sure the way you calculate contributions and pay them to the pension scheme is ready to apply these increases from 6 April 2018.
You should start this process early, as this may take some time.
You can use our online contributions calculator to help work out your costs for each member of staff.
4. Depending on what you have already agreed with your pension scheme, they may also be making the necessary changes to process the increases and may contact you nearer the time to tell you what is happening and what you need to do.
You should let your staff know about the increases. We have an example letter template you can amend, which shows the 2018 increases.
Depending on what you have agreed with your pension scheme provider, they may also write to your staff or have letters that you can use.
You still need to assess anyone who works for you each time you pay them and put them into a pension scheme if they meet the criteria for automatic enrolment. You must contribute at least the right minimum amount at the time and any further increases required.
You must make sure the increased amount of contribution is effective from 6 April 2018. You may want to speak to your payroll provider to help with this.
Originally the first phase of the increases was due to start from October 2017. However, in April 2015 these dates were changed by the government to start from 6 April 2018.
You may have already been planning to make the increases from October 2017.
If you would still like to make the increases from this date, you can. You should speak to your scheme provider and payroll provider to find out how to implement this.
You may wish to speak with whoever provides the direct payment funding for your personal care assistant.
It is your legal duty to make sure the right minimum contributions are being paid from 6 April 2018. If you don’t do this it could result in fines.