Pension automatic enrolment makes it mandatory for employers to offer you a workplace pension that you both pay into. A percentage of the pension contribution comes out of your salary, and your employer (and the government) tops it up with “free” money.
1. Getting a scheme set up
2. The ongoing compliance and processing process
To help people save for their retirement, the government has introduced auto-enrolment. This means that from April 2014, employers with less than 250 employees will have to automatically enrol eligible employees into a qualifying workplace pension scheme (QWPS).
It’s important to remember that your business could be fined up to £2,500 per day if it doesn’t comply, so it pays to plan ahead. The earlier you start, the smoother the process will be.
Eligible employees will need to be enrolled into your pension scheme. Following enrolment they can chose to opt out of the pension scheme. Employers have to contribute towards eligible employees’ pension plans. Employees may also have to contribute depending on whether your payments alone meet minimum levels specified by the Pensions Regulator.
Employees who are not eligible can still choose to join the workplace pension scheme and may also be entitled to employer contributions
You will be given a staging date. 6 months before this you should have:
• checked which workers might need to be automatically enrolled into a pension scheme
• chosen a pension scheme and confirmed that the pension provider will accept all your workers
• ensured that your payroll system supports automatic enrolment, and
• started to make your workers aware of automatic enrolment
A solution that takes away the headache and complexity out of auto enrolment
• A low cost, hassle free option that take’s care of everything to get you compliant
• Ability to include advice on areas such as salary sacrifice, pension provider, investment funds, contribution basis
• Electronic payslips and employee logins to access auto enrolment communications
• Fully compliant audit trail maintained electronically – no storage requirements and complete peace of mind