18 Sep Company Pensions : Auto Enrolment: Employers Take Note!
Yet more pensions legislation! This time it affects almost all employers (there are few exemptions).
If you are an employer, you must acquaint yourself with the 7 vital steps in the Auto Enrolment process.
If you are an employee, you must assess how any changes affect the future value of your pension and take action to supplement your employer’s contributions with additional payments, if you are on course for a pension shortfall.
The 7 vital steps for employers:
1) Know your staging date (this is when you MUST have an appropriate pension scheme in place for employees)
2) Assess your workforce (Who is eligible and who is not? How much do you have to pay? What is the process for enrolling, opting out, opting back in and carrying out regular reviews? etc…)
3) Review your existing pension arrangements (Are you paying in enough and, most important, do they comply with all the new rules and regulars, including process and procedures?)
4) Communicate the changes to your workforce (must be in writing and an audit trail created to demonstrate compliance to The Pensions Regulator). Even if your existing scheme is adequate in every way, you still need to communicate any changes to the process and procedures on the scheme.
5) Automatically enrol your eligible job holders (collect all the relevant information and pass to the pension provider; ensure you comply with the rules and regularly review eligibility criteria; if someone gets a pay rise or changes hours/role, you must check the consequences for the pension entitlements).
6) Register with The Pensions Regulator (TPR) and keep records (collect all the required information and keep it for the statutory minimum length of time).
7) Contribute to your workers’ pensions (ensure you are paying the correct amount at the outset and that any payments are adjusted with any salary changes, or increased contribution levels imposed by law; liaise with your PAYE provider and ensure the correct amount is paid to the pension provider).
There is a lot for all employers to know and do to comply with the new rules. If you fail to comply, there are heavy fines that could be imposed. Burying your head in the sand is NOT a cost effective option.
If you would like advice and guidance on what you need to do and perhaps someone to administer this for you, please contact Astute Money Management on 01202 263856 or email us at firstname.lastname@example.orgM