Workplace Pension Reform & Automatic Enrolment
At a practical level we are focussed upon developing an Action Plan with our clients, based upon The Pension Regulator's '7 steps to prepare for automatic enrolment’:
1. Identify Your Staging Date
This depends upon the number of employees you had registered for PAYE at 01/04/12.
Do your sums! Even though your staging date may be some time off you need to budget for it now. How much is this going to cost you? Plan ahead this could have major cash flow implications for your business if you do not budget for it now.
2. Assess Your Workforce
You will need to review those employees not currently in your pension plan and identify which of them needs to be auto enrolled. Whether an employee needs to be auto enrolled depends on a number of factors including the employees age, salary and whether they are working or ordinarily working in the UK under their contract.
3. Review your pension arrangement
We will test all aspects of your existing arrangement versus Workplace Pension Reform requirements. Importantly, we also need to consider your contractual obligations with regard to Pensions.
4. Communicate with your employees
We suggest that this is done 12 months before your staging date (see point 1)and we will draft communication material for you nearer the time.
5. Auto enrol all eligible job holders
This needs to be done no later than 3 months after your staging date, but can be done sooner if you wish.
6. Register with the pension regulator and create audit trail
You will receive a letter from the pensions regulator 12 months before your staging date and you will need to register your pension plan online no later than 4 months after your staging date. Instructions on how to do this will be provided by the regulator.
7. Contribute to your employees pension
In line with your legal obligations, contractual obligations (if higher), or such other basis as you may decide is appropriate.
Further detailed information can be found at www.thepensionsregulator.gov.uk/pensions-reform.aspx