Good governance in action

Countdown to 2012

October 2012 will see all employers, including charities, being legally obliged to offer a workplace pension. Despite the importance of this development, a recent survey showed many charity trustees remain unaware of what it will mean for them.

The new duties are part of a programme of wider government pension reforms that aim to make saving for retirement the norm.  The new duties mean employers will be obliged to automatically enrol eligible workers into a qualifying workplace pension scheme and make a contribution.

A minimum employer contribution of 3% on a band of earnings will be required, although employers can put in more.  The total minimum contribution for eligible workers should equal 8%, made up of employer contributions, worker contributions and tax relief.  To help employers, the minimum contribution will be phased in from 1% to 3%.

As part of these overarching reforms a new scheme, personal accounts, is being created to provide a low charge workplace pension scheme that any employer can use. It will be run by a not-for-profit Trustee Corporation and is aimed at low to medium earners, many of whom will not have had access to a workplace pension before. Employers can choose personal accounts, or another qualifying scheme.

The Personal Accounts Delivery Authority (PADA) is charged with delivering this scheme. For more information visit www.padeliveryauthority.org.uk
ACRE is researching this issue for village halls, as soon as I have more information I will forward this to you.

Samantha Smith
Community Lincs

Extract taken from Charity Commission News - Issue 29, Summer 2009, available at: http://www.charity-commission.gov.uk/tcc/ccnews29.asp