The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including putting those who meet certain criteria into a workplace pension scheme and contributing towards it. This is called automatic enrolment. It’s called this because it’s automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme. But it’s not automatic for you. You need to take steps to make sure they’re enrolled. BBPS can ease the burden & set up a full AE package for your business.
What’s Changed?
Who is affected?
Most workers in the UK are going to be automatically enrolled into a workplace pension scheme by their employer. From the date they’re automatically enrolled they’ll have a month to choose whether or not to ‘opt out’. If they do nothing they will be enrolled in the scheme. They will make contributions to their retirement fund from their pay for as long as they are employed, or until they take their money out.
When will auto-enrolment take effect?
New employer duties are being gradually introduced. They have already been applied to most organisations throughout the UK. The minimum contribution has been introduced at 2% of a worker’s pay. This will gradually rise to 8%.
How can we help?
As Auto-enrolment specialists our objective is to offer a holistic service to SME’s. Our aim is to ensure that SME’s are able to fulfil their new “Employer Duties” efficiently and with the minimum fuss. We will work with you to develop a solution which meets the needs of you and your employees.
The first steps . . .
The first step of this process will be to gather information about your business this will ensure that we understand all of the issues you are likely to have. From this position of strength we will create an implementation plan setting out a timetable for the key stages of the process.
Auto Enrolment Implementation
After an initial assessment of your workforce to determine your likely contributions, we will then recommend a suitable design for your pension arrangement, arrange the selection of a suitable pension arrangement, as well as a “Default Investment Strategy”. We will create and deliver an employee communication program, liaise with the chosen provider, and finally complete your “Declaration of Compliance” for The Pensions Regulator.
Aftercare
Automatic Enrolment means that Eligible Jobholders become members of the pension plan immediately. Employers will have to ensure their employees have information about the scheme and they will have to deduct pension contributions from the employee’s salary. Employees will be able to opt out but only after the first contribution has been deducted. All employers will have to ensure that they have a pension arrangement that complies with the new legislation. This can be an existing arrangement which may require some modification or a new arrangement.
Auto Enrolment Jargon Buster
Automatic Enrolment is a new concept to most people, the pension jargon is where some people are going wrong. That’s why we have come up with the Auto Enrolment Jargon Buster. There is now no need to be a financial adviser or pensions expert to understand what the changes mean.