Are you Ready for Pension Auto-Enrolment?
As a Business owner or HR professional you are no doubt aware that every company in the UK is, or will be in the next few years, required to implement an auto-enrolment pension scheme for all employees. The activation date is subject to the size of the company (the number of employees on the payroll in the UK) and to find your companies staging date follow this link: http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx
What is expected from employers?
- Make sure that the company has a pension scheme that complies with the auto-enrolment requirements
- Enrol all qualifying new starters (re-enrol staff if required)
- Ensure that the minimum contributions are made based on the earnings of members
- Collect contributions (consider salary sacrifice) and forward them to the pension provider
- Register the companies auto-enrolment scheme with the pensions regulator
- Provide employees information about the company pension scheme
- Administer any opt-outs and make the necessary refunds
- Maintain the necessary records
- Offer employees that are not members of the pension scheme within three years the opportunity to re/join. One period per year at least must be made available for employees to re-join.
Employers Should Not:
- Offer pensions investment advice to employees. Rather advice employees to seek advice from a financial advisor. Use a website like these:
- Don't influence employees not to join the scheme
- Don't provide an employee with an opt -ut form
- Don't encourage employees to opt-out or employ them with the agreement that they will opt out
For comprehensive information on what is expected of employer's visit the pension regulators website: http://www.thepensionsregulator.gov.uk/pensions-reform.aspx
On average it can take up to a year to set up or restructure a group pension scheme to be fully compliant with the new legislation, so do not delay starting the planning process now. If your organisation would like to see how best to manage pensions auto-enrolment, then call Tugela People.