Auto Enrolment legislation came into effect October 2012 and will affect every employer in the UK without exception.
Doing nothing is not an option
Ignoring this legislation and avoiding Employer duties will only lead to expensive financial penalties. Penalties start from £50 per day and can reach up to £50,000 for non-compliance.
Often, these penalties, even if paid for a few days of non-compliance, will be far higher than actually implementing an appropriate solution.
Avoid the Capacity Crunch
Pension scheme providers have the capacity to provide around 300-400 each per year whereas the demand is more like 15,000. This means that providers are ‘cherry picking’ the most profitable schemes and not quoting until the last minute, if at all.
Waiting to see if terms are offered is dangerous. A scheme provider may not quote in time for the staging if at all leading to non-compliance and hefty fines.
Duties Don’t Start and End There
An employer is required by law to implement the following by their staging date:
1. Assess eligibility of all employees including potentially agency staff
2. Register with The Pension Regulator
3. Ensure any existing schemes comply with all regulations
4. Manage the initial enrolment process for all employees
5. Manage and update the opting in and out of all employees
6. Manage contributions
7. Ensure that inducements to opt out are not offered
8. Provide regular updates and employee communications
9. Keep accurate records of all of the above
10. Manage your own day to day business
A Solid Solution
We have solutions available that can accommodate all numbers of staff at whatever timescale at whatever payroll value ensuring ‘Best Employee Outcome’.
Plans can be implemented in advance (Mothballing) of staging date or last minute.
Setting a scheme up in advance, with or without members, can help budgeting and avoid the capacity crunch. Costs can be lower and the full employer liability known at a much earlier stage.
Six months prior to the staging date, automatic notification will be sent asking for employee data in readiness.
If the staging date is imminent solutions are available with pre-determined terms and costs allowing Auto Enrolment duties to be fulfilled at very short notice.
Flexible Support Packages
Tailored to suit individual employer requirements, these can be paid on monthly, quarterly, half yearly or yearly basis depending upon budget. Support offered can range from simple scheme set up to comprehensive including all assessing existing schemes, all employee communication, presentations, individual member advice, fund recommendations and ongoing reviews. Ensuring that Employers Duties are met and the Employer left to focus on the day to day running of the business.