Auto-enrollment help

U.K. regulator issues auto-enrollment guide for startup businesses

The Pensions Regulator is helping startups in the U.K. navigate a new requirement that they enroll their employees in a defined contribution plan from the moment they're hired.

Beginning Oct. 1, new businesses in the U.K. with at least one employee are required to automatically enroll new employees in a defined contribution plan.

To help with this process, The Pensions Regulator launched an online guide that contains information about the auto-enrollment process and contribution rates.

Established businesses were required to enroll employees in defined contribution plans as early as 2013 under the auto-enrollment regulation.

When automatic enrollment was launched, some 55% of employees were saving into workplace retirement plans.

By 2016, that number had increased to 78%, according to data provided by the regulator.

Darren Ryder, director of automatic enrollment at TPR, said in a news release: "The start of instant pension duties for new businesses will continue the great strides automatic enrollment has made to reverse the downward trend in workplace saving."