Although the Pensions Industry is constantly changing, the biggest change hitting the headlines is Automatic Enrolment. These changes affect every single business in the UK, no matter what size you are, with no exceptions!
Very simply, Auto Enrolment is the compulsory enrolment of all your eligible employees into a qualifying Pension Scheme - with compulsory contributions being paid by both the Employee and the Employer.
Since February 2018, all Employers in the UK must comply with Auto Enrolment, with new Employers needing to ensure they are compliant with the Workplace Pension Regulations from day 1.
Clearly Auto Enrolment does lead to significant additional costs for most organisations as Employer contributions are compulsory, however the additional work that needs to be undertaken by your HR, finance and payroll teams could lead to an even bigger strain on your organisations resources.
Our advisers at Demna Consulting have successfully implemented Auto Enrolment projects for over 175 clients, meaning we know exactly what needs to be done, the best way to go about doing it, and the easiest and simplest ways of communicating these changes to your employees.
While you may believe that you have already dealt with Auto Enrolment some time ago, failing to ensure ongoing compliance of the Workplace Pension rules are landing some Employers in trouble with The Pensions Regulator. Tens of thousands of Employers have already received fines for non-compliance and a rising number are now finding themselves in Court.
The minimum level of pension contributions due under Auto Enrolment increased in April 2018 and again in April 2019.
Employers must ensure that contributions to their Pension Schemes adhere to these increased rates meaning decisions will need to be made on how best to achieve this. Decisions need to be made on the level of contributions which will be payable by both the Employer and the Employee, the salary basis used to calculate these and what happens if an employee doesn’t want to pay the higher contribution. Once these decisions have been made, it is vital that the changes are communicated to employees in advance, to allow them time to understand what will happen.
Every 3 years Employers must undergo the Re-Enrolment process which includes communication with Staff, re-enrolling employees into the Pension Scheme who have previously opted out and completing their Re-Declaration of Compliance for The Pensions Regulator.
While for some Employers this may seem a long way off, for those who staged in 2015 and 2016 their Re-Enrolment duties are fast approaching!
From 1st October 2017 any new Employer that is set up must be compliant with the Auto Enrolment regulations immediately. This means that if you are involved in the incorporation or setting up of a new Company from this date, Auto Enrolment is another requirement that needs to be dealt with.
The Pensions Regulator has started to spot check Employers to determine whether they are compliant with their ongoing Auto Enrolment duties. Unfortunately there are some Employers who believed that their Auto Enrolment duties started and stopped on their Staging Date, which is not the case. Employers should ensure that they remain fully compliant with all of the regulations including:-
We offer a ranges of services to Employers to analyse their existing arrangements and processes to ensure that any changes that need to be made are done so. Given The Pensions Regulator’s increased activity in this area it is vital that you can evidence your ongoing compliance with the Regulations.
As mentioned above, our advisers have successfully gone through the Auto Enrolment process with a number of organisations, meaning we are best placed to help you and your organisation find your way through the complex requirements.
We can provide a range of services depending on your specific needs, whether it be strategic advice to the Board, analysis of your existing arrangements and workforce, implementing qualifying Schemes or communicating the changes effectively to your employees.
We can take as much or as little of the strain off you and your organisation as you need us to.
For more information or a chat about how we can help you and your organisation please do get in touch