Employers typically spend less than two hours a month on their ongoing auto-enrolment (AE) duties and are largely supportive of the upcoming increases in contribution rates, according to findings from The Pensions Regulator (TPR).
TPR’s employer survey revealed that AE is largely seen as a ‘business as usual’ task, with 84 per cent of medium-sized employers reporting that they do not have any difficulty keeping up with their duties.
“We have worked hard to make automatic enrolment as straight forward as possible so it’s great to hear that employers can complete their ongoing duties quickly and easily,” said Darren Ryder, TPR’s Director of Automatic Enrolment.
On 6 April, minimum pension contributions will increase from a two per cent total to five per cent (two per cent employer contribution and three per cent employee contribution), and then next year to eight per cent (three per cent employer contribution and five per cent employee contribution).
The survey showed that around nine in 10 employers were aware that pension contributions will increase in April 2018, with 74 per cent of medium-sized employers agreeing that future increases in contribution rates were a good idea.
