Since 2012, by law, all employers have had to offer a pension scheme to staff.
All workers who earn above £10,000 a year become automatically enrolled into a pension. This is called ‘automatic-enrolment’ because it is automatic for staff – they don’t have to do anything to be enrolled into a pension scheme, but it is not automatic for employers.
Which pension scheme should I use?
There are a large number of pension schemes that you could choose to use ranging from sophisticated Group Personal Pension Plans offered by traditional life assurance companies, through to simpler but less flexible Master Trust based plans, where multiple employers join the same scheme and in effect have their own section.
Since the Auto Enrolment legislation went live we have seen a huge number of new pension scheme providers enter the market and we are concerned that not all of them are going to survive for the long term, potentially leaving employers in the lurch if they fail. We have carried out a great deal of due diligence in the pension market and have arrived at a small panel of pension scheme providers that we have confidence will survive in this new market.
By using our service we will provide you with a full recommendation as to which pension provider best suits your business and will implement the scheme for you so that it is ready to use from your Duties Start Date.
What about complying with all the rules and regulations?
With Auto Enrolment comes a huge raft of employer duties such as keeping records, enrolling staff when they qualify for the pension scheme, re-enrolling staff who have opted out etc.
We have identified 32 different duties that have to be carried out in order to remain compliant with the rules and 26 of these have to be completed at each pay run.
We have developed a service to take all of this hassle away from you and help you remain compliant without interrupting your normal business processes.
How is my payroll affected?
Those employees who are eligible to be enrolled into the pension scheme will need to have pension contributions deducted from their pay and you as their employer will also have to make pension contributions to their pension plan.
These contributions will have to be accounted for and shown on each employee’s payslip and the amounts will have to be forwarded to the pension company at each pay run.
We have a payroll bureau service that can take care of all of these extra pension duties for you as well as running your normal payroll services.
Outsourcing all of these duties can save you time and allow you to concentrate on running your business.
Our Corporate Pensions Service
Our comprehensive service takes care of all your Auto Enrolment requirements and our modular approach enables you to opt for any of these services:
- Pension scheme recommendation and implementation;
- AE Compliance and record-keeping;
- Pension scheme reviews
The cost of not complying could be painful
Fines can be exacted for failure to implement a qualifying pension scheme, failure to complete the assessment of workers correctly and on time, failure to enrol the relevant workers automatically or communicate in writing with all workers and failure to complete the declaration of compliance.