Auto Enrolment Pensions Legislation

New pension rulesThe law in the UK for workplace pensions has changed to encourage employees to save for their retirement. All employers are required to provide a workplace pension for eligible employees and contribute to a pension scheme that meets qualifying standards.

As an employer you must start enrolling staff into a compliant Auto Enrolment Pension Scheme from your Staging Date. Your Staging Date will depend on the number of employees you have and will likely be phased in from April 2015 to March 2017.

You can check your exact staging date by checking online with The Pensions Regulator at www.tpr.gov.uk/staging-date

INITIAL STEPS

The law requires that on your Staging Date you MUST:

  • Chose an Auto Enrolment Pension Scheme provider
  • Identify the staff members who are to be automatically enrolled
  • Enrol staff who are eligible and start contributing to their pensions

–          Write to each member of staff individually, informing them of the changes and their rights.

Once you have established an Auto Enrolment Pension Scheme you MUST register the scheme with The Pensions Regulator. Failure to complete registration on time means you will not have complied with all your employer duties. Failure to comply with all your duties could result in fines and/or prosecution.

ONGOING STEPS

The law requires that you fulfil your on-going Automatic Enrolment duties from your Staging Date. To remain compliant you MUST:

  • Pay regular contributions into your workers’ pensions
  • Process any opt out or opt in requests within the required timescales
  • Assess all new starters and automatically enrol them if they are eligible
  • Keep and maintain accurate records and audit trail for 6 years
  • Monitor the age and earnings of your staff so you will be alerted if your duties in relation to them changes.

PENALTIES & FINES FOR NON – COMPLIANCE

The Pensions Regulator can and will issue penalty notices to punish deliberate non –compliance.

A Fixed Penalty will be issued if you do not comply with a Statutory Notice and if there is evidence of a breach of law. This is fixed at £400 and payable within a specific period.

The Pensions Regulator can also issue an escalating penalty notice for failure to comply with a Statutory Notice. This penalty has a prescribed daily rate of £50 to £10,000 depending on the number of employees you have.

The SOLUTION TO YOUR AUTO ENROLMENT REQUIREMENTs

As your Insurance Broker we would like to ensure that you are complying with the legislation and therefore avoiding any potential fines that you may suffer as a result of non- compliance.

I understand that you are running your business and may or may not be aware or able to fulfil all your duties under the new legislation as an employer. With this in mind we are able to introduce you to a service where all your duties and responsibilities will be taken over by an Auto Enrolment Pension Scheme provider

Staffplan Pensions Ltd creates a partnership that encompasses every part of the duties and responsibilities facing businesses in Auto Enrolment. You as an employer, can be confident in being compliant at your Staging Date and that you meet the initial and on-going rules and regulations that apply.

Staffplan Pensions Ltd provides a “one stop” simple application and payroll deduction process that will allow you to focus on managing your business with the peace of mind that you have complied with the new rules.

Staffplan Pensions Ltd will:

  • Provide a certificate and register the scheme with The Pensions Regulator
  • Provide you with a web portal
  • Prepare the Initial Workforce Assessment to identify based on age and earnings which of your employees must be automatically enrolled.
  • Notify all employees who will be automatically enrolled and advise them of their rights and how they can view their benefits.
  • All other eligible employees will be notified of their rights and their responses will be managed
  • Provide the necessary information to complete the appropriate deductions from payroll.
  • Manage any questions from the employer or employees on the running of the scheme via dedicated website and phone helpline.

NEXT STEP

Please contact me at your earliest convenience and I would be more than happy to discuss and arrange a meeting with Staffplan Pensions to plan and set up your Auto Enrolment Pension Scheme.

I will leave you with the recent press release from Charles Counsell, Chief Executive for Automatic Enrolment of The Pensions Regulator.

“The first two years of automatic enrolment have been a great success with many thousands of employers helping to change the way we as a nation save for retirement, but this is no time to rest.

Small employers whose duties are on the horizon must make sure they know what they will need to do and when. We will provide employers with the information they need to comply but it comes with a warning: act now, be prepared or risk financial penalty.

We know that as the number of employers reaching their deadline rises, the number of times we will need to use our compliance powers will also rise.”