EMPLOYERS should start planning now for new workplace pension duties as they roll out to medium and small businesses over the coming months, says The Pensions Regulator.

The advice comes as staff at medium-sized companies, employing less than 60 workers, become the latest to be automatically enrolled.

The reforms are considered the biggest change to saving for retirement for over a century. The first small and micro employers will need to be ready this summer.

The law means both employers and their staff will pay in to the workplace pensions.

It is aimed at encouraging millions of individuals aged 16 to 74 to save more – or save for the first time – for their retirement.

According to latest figures, only one in three private sector workers were in a pension scheme in 2012 and the trend has been downwards for the last 40 years. Automatic enrolment aims to change that trend.

A seminar in Dorset, staged by PW Payroll Solutions, heard the importance of employers giving themselves plenty of time to put plans in place for auto enrolment.

All employers have a staging date which is set in law and is when the duties come into force for their business. It is the date from when automatic enrolment activities must become 'business as usual', like real-time PAYE.

Large firms employing more than 120,000 people started auto enrolment three years ago and the majority of larger size medium employers had their staging date in 2014.

Now it's the turn for smaller companies to approach their staging dates with the next two years to act.

Bryan McDaniel, industry liaison manager with The Pensions Regulator, said: “Our advice is don't leave it until the last minute but, instead, start planning 12 months before your staging date.

“You'll need to develop your initial plans, find out who to enrol, choose your software, check records and choose a pension scheme.”

Employers who fail to act risk a fine. There will be further seminars on auto enrolment. Call 01202 663700 or go to pwpayrollsolutions.co.uk to find out more.