If you employ people in the UK you MUST be aware of auto-enrolment (also known as automatic enrolment or compulsory workplace pensions). This is one of the biggest changes in pension provisions for generations and means that anyone who employs people in the UK will have 33 new responsibilities to help those individuals save for their retirement.
The implementation of a workplace pension scheme is an onerous task. However, there are only four key facts an employer actually needs to know. Fact 1: You have obligations as an employer In summary, the employer must:
- assess their workforce and their pension arrangements
- communicate the changes with their employees
- automatically enrol eligible jobholders and manage those who opt out
- register with the Pensions Regulator and keep records
- make the required contributions to employees’ pensions.
Fact 2: You have a start (or ‘staging’) date Your allocated start or staging date is determined by the number of employees you had on 1 April 2012. You must meet this deadline or face fines. The staging dates are:
|Number of employees||Staging date|
|< 30||June 2016 onwards|
Fact 3: You need an implementation plan It takes nine to 12 months to prepare for auto-enrolment and during this time you need to put in place a system that will ensure your business is fully compliant. Our recommendation is that you co-ordinate all the component parts to create a seamless and automatic process on each run of your payroll. The components you will need to glue together are:
- your pension provider
- your payroll process/provider
- your HR department
- the Pensions Regulator.
Fact 4: CBW can help If you have 30 or more employees you need to be formulating your plan now. CBW can help in many ways and has a number of solutions.