Small businesses 'must plan now' for auto-enrolment
Business News 19 Dec 2013
Small businesses are being urged to take steps now to ensure that they are fully prepared for the introduction of the new pensions auto-enrolment system.
The new rules, which are being phased in over a number of years, require employers to automatically enrol all eligible members of staff into a workplace pension scheme, and to pay a minimum contribution into the fund.
However, the Chartered Institute of Personnel and Development (CIPD) has warned that many small firms are likely to face challenges when implementing the new system, due to limited resources and a lack of expertise.
A survey conducted by the organisation has suggested that while many larger firms have successfully implemented auto-enrolment since its launch in 2012, a significant proportion of small and medium-sized businesses are concerned about the costs and potential complications involved in adopting the scheme.