Every employer will have to act to fulfil their new legal duties. If you are an employer, it is vital that you understand your new responsibilities.
Your first three steps are as follows:
- Know your staging date – when to act
- Assess your workforce
- Review your pension arrangements
…What it means for you?
- Does your current pension arrangement qualify as an automatic enrolment scheme?
- Will you be able to put new processes in place and comply with record keeping and reporting requirements in time?
- Will your existing payroll process need to be altered?
- Have you considered the additional administration and cost involved in meeting the new requirements?
…How we can help?
To start the process off, we will provide you with an initial assessment report based on the number of workers you have which:
- Gives some guidance on what you’ll need to do before, on and after your staging date.
- Review any pension schemes you have in place to find out what you have to do to make it suitable for automatic enrolment.
- Advise you on ways to save money and offset the cost of automatic enrolment, for example by phasing in changes now or by introducing salary exchange.
- Design & implement the right pension scheme for your business and your workers.
…What happens if you don’t act?
- Warning – Compliance/unpaid contribution notice
- ‘Wake up call’ - Fixed penalty of £400
- Persistent offenders may face an additional fine of £50 to £10,000 a day.
By the end of 2014, 169 businesses were fined. (Source: The Pensions Regulator)
469 Compliance Notices were issued between 1st July and 30 September in 2015 by the Pensions Regulator. (Source: The Pensions Regulator)
*Auto-enrolment advice is not regulated by the Financial Conduct Authority.
A Guide to Auto-Enrolment
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