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Workplace pensions for employers

What are workplace pensions?

Workplace pensions are a government initiative introduced to help more people save for their retirement. All employers in the UK will have to automatically enrol their eligible jobholders into a qualifying pension scheme.

 

Each employer will have a different staging date (between October 2012-18) depending on the number of people on the company’s PAYE.  Each employer must have a qualifying pension scheme in place by their staging date, and automatically enrol their eligible employees into the scheme. There is no requirement for a worker to contribute unless the employer is not paying the overall minimum required.

 

When is my staging date?

As an employer, your staging date will depend on the number of people in your largest PAYE scheme, as of 1 April 2012, with the biggest employers setting up their schemes first, and rolling out through to the smallest businesses by 2018. Find out your staging date.


You can choose to bring your staging date forward.  If you wish to do so you will need to inform The Pensions Regulator.

 

Preparing for auto enrolment

When preparing for your staging date, you will need to assess your workforce and identify which eligible workers will need to be automatically enrolled into a workplace pension scheme.  Eligible workers automatically enrolled into a pension scheme will meet the following criteria:  

  • be 22 years old or over, but under the state pension age
  • not already in be a qualifying pension scheme
  • earn more than £10,000 a year (2014-15 tax year figures)
  • ordinarily work in the UK

Arranging a workplace pension scheme

If you already offer a pension scheme, it must meet the minimum requirements of a qualifying scheme. If it does not meet the criteria set out by auto enrolment regulation then you will need to change certain aspects of your scheme so that it does comply or put an auto-enrolment scheme into place.

 

Setting up, administering, and meeting the regulatory requirements of these schemes is likely to provide a logistical challenge to all employers and especially those that do not have a company pension in place already. 

 

To help with these challenges we have developed fixed-price support packages to help employers meet their obligations. The package includes:

 

  • A management meeting to discuss the requirements of the employer
  • Reviewing with managemnent the duties the new rules create
  • Analysing the workforce to calculate who is covered by the rules
  • Assessing which of the three permitted contributions types is most appropriate
  • Calculate the cost of contributions to the employer
  • A presentation of the changes to the employees
  • Recommending a provider and setting up the scheme
  • Assistance implementing the changes via your payroll system
  • Help in issuing the legally required paperwork to the employees
  • Confirming you have met the rules to the Pensions Regulator

 

Our fee for this complete package depends on the size of the workforce but is generally in the region of £1,500.

 

Contact us by email, or by more traditional methods for more details.

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