Sage People Pension Auto Enrolment Solution

Sage People’s (formerly Fairsail) Global HRIS solution suite has recently added pensions auto enrolment functionality to it’s suite. This module will help UK businesses to better their pensions auto-enrolment responsibilities and ensure that they adhere to the requirements as set out in the pensions act.

The Sage People Auto Enrolment features and functionality include:

  • Continuous eligibility assessment & management
  • Employee contribution management
  • Employee communications templates and administration
  • Self service portal for
  • Part of HRIS or full HR/HCM/Time application
  • Single point of employee data information and administration
  • Continuous eligibility process and management
  • Support for multiple schemes
  • Support for flexible benefits
  • Full audit trail
  • Automated generation of ALL employee communications
  • Automated support for compliant opt-out process
  • Automated generation of contributions
  • Easy to set up and configure
  • Configurable links to payroll and HR systems to extract data every time this is needed
  • Single point administration eligibility on earnings & age calculations every pay-cycle
  • Deferment management

Planning for Auto Enrolment…

As the old adage goes ‘poor planning leads to poor performance’ and in our experience this applies to the planning and then rolling out an of Auto Enrolment programme. Here are 5 key steps to help ensure a successful roll out:

1. Prepare

  • Know your companies staging date
  • Inform the companies decision makers to ensure that the necessary budget and support is given to the change

2. Plan for the change

  • Assess your company’s current pension provision against the auto-enrolment requirements for new and existing members
  • Plan the change and communication program (key dates, milestones, tasks, resources, etc.)

3. Review the impact to the company’s current pension arrangements

  • Review the current scheme rules against the auto-enrolment requirements to ensure it qualifies
  • Review the current administration process for joiners, leavers and ongoing contributions
  • Ensure that a default investment option is identified and appropriate. Mercer’s recent DC survey revealed that 79% of schemes have more than 75% of members in their default investment fund. Ensuring this fund is appropriate for the scheme’s members is therefore essential. The default fund guidance issued by the Department of Work and Pensions will provide some assistance here.
  • It’s advisable to review the retirement process and adherence to discrimination legislation at the same time

(Follow this link to a online calculator that determines the cost your company for auto-enrolment: http://www.thomsons.com/aecalculator)

4. Mobilise an auto enrolment implementation team

  • Compile a team that is responsible for managing the project who understand the legislation and timeframes
  • Review the current situation against the requirements and propose a plan on making the necessary changes and communicating them effectively with all the stakeholders
  • Link with trustees (where appropriate) and financial advisors to support the company through the process

5. Manage the change

  • The responsible team compiles the communication plan and material
  • Manages the communication and implementation process
  • Manages any queries or issues that are raised throughout the process
  • Review the effectiveness of the project post the implementation date

Employers may consider implementing a salary sacrifice scheme for pensions as part of the overall auto-enrolment pension’s implementation.

Benchmarking that XpertHR published last year shows how popular salary sacrifice schemes are and that pensions comes second to childcare vouchers as a most commonly offered benefit. Overall, 63.2% of employers make use of salary sacrifice in some way; a further 2.7% are in the process of introducing salary-sacrifice benefits and 4.1% are considering doing so.

 

Benefits Most Commonly Offered Through Salary SacrificeBenefits Most Commonly Offered Through Salary Sacrifice

 

So, if your organisation would like to see how best to manage pensions auto-enrolment, then call the auto enrolement experts at Tugela People.

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:

http://www.unbiased.co.uk/

http://www.searchifa.co.uk/

  • 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.