Auto Enrolment (Workplace Pensions)
By 2018 all employers will have had to comply with the requirement to put in place suitable pension arrangements for their employees. The legislation surrounding Auto Enrolment can be bewildering especially if you have never had a Workplace Pension scheme in place before.
What does this mean for me as an employer?
Each employer has a Staging Date, this is the date by which you must have put in place a compliant pension scheme to meet the Auto Enrolment requirements. You can find out your staging date by visiting The Pension Regulator’s website here http://www.thepensionsregulator.gov.uk/
Once you have established your Staging Date we recommend you start to plan how you will comply with this at least 9-12 months before the due date.
Which pension scheme should I use?
There are a large number of pension schemes that you could choose to use ranging from sophisticated Group Personal Pension Plans offered by traditional life assurance companies, through to simpler but less flexible Master Trust based plans, where multiple employers join the same scheme and in effect have their own section.
Since the Auto Enrolment legislation went live we have seen a huge number of new pension scheme providers enter the market and we are concerned that not all of them are going to survive for the long term, potentially leaving employers in the lurch if they fail. We have carried out a great deal of due diligence in the pension market and have arrived at a small panel of pension scheme providers that we have confidence will survive in this new market.
By using our service we will provide you with a full recommendation as to which pension provider best suits your business and will implement the scheme for you so that it is ready to use from your Staging Date.
What about complying with all the rules and regulations?
With Auto Enrolment comes a huge raft of employer duties such as keeping records, enrolling staff when they qualify for the pension scheme, re-enrolling staff who have opted out etc. etc. We have identified 32 different duties that have to be carried out in order to remain compliant with the rules and 26 of these have to be completed at each pay run.
We have developed a service to take all of this hassle away from you and help you remain compliant without interrupting your normal business processes.
How is my payroll affected?
Those employees who are eligible to be enrolled into the pension scheme will need to have pension contributions deducted from their pay and you as their employer will also have to make pension contributions to their pension plan. These contributions will have to be accounted for and shown on each employees payslip and the amounts will have to be forwarded to the pension company at each pay run.
We have a payroll bureau service that can take care of all of these extra pension duties for you as well as running your normal payroll services.
Outsourcing all of these duties can save you time and allow you to concentrate on running your business.
We anticipated the challenges of Auto-enrolment early and established a comprehensive service to take care of all your Auto Enrolment requirements
Our modular approach enables you to opt for any or all of three services:-
- pension scheme recommendation and implementation;
- AE Compliance and record-keeping;
The cost of not complying could be painful
According to the Pensions Regulator (TPR) many employers are failing in their statutory requirement to prepare for Automatic Enrolment (AE) in a workplace pension scheme.
Recently, small and micro employers have been required to prepare for AE but many have struggled because they often don’t have dedicated and trained staff to deal with the process.
Fines can be exacted for failure to implement a qualifying pension scheme, failure to complete the assessment of workers correctly and on time, failure to enrol the relevant workers automatically or communicate in writing with all workers and failure to complete the declaration of compliance.
Let us take the risk and time burden away from your business. Give us a call or drop us an email to discuss your requirements. You can read our Auto Enrolment brochure.