Pension Reform

leonag

I've had 2 clients in the last couple of days asking me about what pension reform means for them, I am intending to book on the pension reform CPD course, but that's not for another month. So I was wondering if anyone can help me.

Client 1: A small engineering company with 1 employee, plus the owner. If I'm right the reform doesn't apply to him until minimum June 2015, is this right? Also the employee earns more than £42000, this makes him an eligible job holder, what is the significance of the £42,475 figure? If the employee has his own personal pension will the employer still need to contribute.

Client 2: Self employed sole trader, he's heard that the government is also going to be rolling out a compulsory contribution to a national pension scheme by all self employed people.

Any help greatly appreciated.

Fireraiser

Does this help?

http://www.thepensionsregulator.gov.uk/employers/7-steps.aspx#s4671

I've found this on the NEST website;

Self-employed

Self-employed people and single person directors will be able to join NEST.

If you're self-employed or a single person director the new duties under the Pensions Act 2008 don’t apply to you, but you’ll still be able to join NEST as an individual member.