UK announces update on pension auto-enrollment

Minimum contribution rates to occupational pension plans that are used to satisfy auto-enrollment requirements are set to increase on 6 April 2019. The minimum employer contribution will increase to 3 percent and the total minimum pension contribution will increase to 8 percent of qualifying earnings. Employees are required to contribute the difference between the actual employer contribution, which may be greater than the minimum, and the total minimum pension contribution. The rates mentioned above represent the general minimum contribution requirements. Schemes may be certified by the Pensions Regulator using different minimum contribution levels, which may vary according to plan type and the plan’s definition of qualifying earnings.