We have heard a number of our prospective customers ask “after 2012 will I be better off using a scheme such as NEST or to extend my existing GPP/Trust Based Money Purchase scheme for all of my employees?”
We consider that the first issue is not one of which product you use but how you manage compliance with the auto enrolment regime!
Every eligible employee in the UK will be auto-enrolled into a meaningful workplace pension scheme by (at the latest) September 2016.Each employers staging date is dictated by the number of employees they have. Please see across for a calculator which tells you when yours might be.
Each employer will eventually need to make pension contributions of at least 3% for every one of these employees who take up their scheme, regardless of the scheme type.
Where this level of contribution can be alarming for some businesses it can be phased in over time and minimised with careful tax planning. The immediate, but less obvious problem will be managing auto-enrolment administration and all that comes with it.
This, we believe will be the hidden cost of the new Pensions Act.
Lansdown Place Corporate Benefits offers specialist Independent Financial Advice in this area. We can help you plan and manage your obligations, providing all the expertise, guidance and technology to make sure you comply with the new regulations. Whether that be through your existing pension provider or a separate software system selected from across the market.
All existing workplace pension schemes need to be assessed to ensure they are of a specified minimum quality by each employer’s respective implementation date.
All employers without a qualifying workplace pension scheme need to set up and register one by their respective staging date It is estimated that nearly 750,000 employers will need to do this before the end of 2016.
Lansdown Place Corporate Benefits have specific systems and advice to help employers manage their auto-enrolment obligations along with many other employee benefits areas. We can work with existing or new “qualifying workplace pension schemes” and establish a strategy for compliance ready for a company’s implementation date.
In light of the changes proposed by the Pensions Act 2011 the questions we would ask each business right now are, how you will manage:-
Some of the key features of our systems include:-
This will mean:-
It is then, and only then, that we can begin the debate with you about which product your employees should be auto enrolled into!
Auto-Enrolment is the new Pension legislation that requires all companies to automatically enrol their eligible workers into an approved workplace pension and pay employer contributions. [watch video]
Auto enrolment and NEST
NEST is a brand new workplace pension scheme that gives members a single pension pot they can contribute to even if they change employers. [more]
Auto enrolment software
Jargon Free Benefits is a market leading system which will, amongst other things, manage your auto enrolment compliance and pension scheme registration with The Pension Regulator. For a short demonstration of how this might work, click here; [more]
My staging date
Your staging date is the date by which you must be ready to comply with the new auto enrolment regulations. Although some of these are yet to be confirmed an indication of the timeline for companies staging dates is attached. [more]
My employer duty
As an employer you must comply with the new regulations and understand where to start. The Pensions Regulator has provided a guide which you can access through this link however the corporate team at Lansdown Place will be happy to help you should you need assistance. [more]
The best way to inform employees
There will be numerous radio adverts and communications from the government over the next few months but feel free to look through the notes from The Pensions Regulator on this link for help. [more]
Qualifying pension contributions
Contributions are compulsory for employers and will be phased in as follows:
Auto enrolment regulations
The full details of how this legislation will be applied has now been decided and details of the legislation and guidance can be found [here]
What does good look like?
A “good” pension scheme is a very subjective term and what does good look like? TPR have published a document recently to outline their ideas on the subject [here].