auto enrolment presentation by kevin cunningham managing ... · scheme for automatic enrolment...

Auto Enrolment

��Financial Advice you can Value

Auto Enrolment Presentation

by

Kevin Cunningham Managing Director & IFA

Bleathwood IFA Ltd

Auto Enrolment


It’s the same as Stakeholder Pensions in the workplace!

NO

Auto Enrolment requires a lot more work and action


Common Myths

Myth Reality

Self employed contractors are not subject to It is possible for a self employed person to be a Automatic Enrolment Worker under A. E. in certain circumstances The Pensions Regulator will never find out if The Pensions Regulator get daily PAYE data from the employer does not carry out its duties HMRC and Staff may also whistleblow It is only a £50 fine for small employers The regulator can issue a £400 fixed penalty for

failing to comply with the employer duties and this may be followed by escalating penalty

Postponement delays the staging date and Postponement does not change the staging date there is no need to do anything until then (and other duties still apply in this period) Employers can use their existing pension It may not be possible, as the scheme may not be scheme for Automatic Enrolment suitable and / or the provider may not allow it. Sole employee/Director companies will not A sole employee (who is a Director of that company) is have any Automatic Enrolment employer duties exempt, but the company may have non-employees

who are considered workers


Lessons learnt from employers who have staged

•  Plan to have your pension and payroll ready 6 months ahead of staging.

•  Employers need to know how to do each task, not just that it needs to be done.

•  Get help and advice if you need it, but remember that the responsibility for complying with the automatic enrolment legislation remains with the employer.

•  Keep in mind the importance and scale of employee data cleansing in advance of staging.

•  Employers should test their software in advance, including: •  assessment, •  payroll to pensions provider communications, and •  employee communications.

Overview of legal duties and safeguards


Automatic enrolment legislation gives employers a duty to: ü automatically enrol all eligible jobholders ü communicate to workers providing timely and appropriate information ü allow non-eligible jobholders to Opt-in and entitled workers to join ü manage Opt-outs within the Opt-out period and promptly refund contributions ü automatically re-enrol all eligible jobholders every three years ü complete declaration of compliance (registration) with the Regulator ü keep records, and ü maintain payments of contributions.

The employee safeguards state that employers: û must not induce workers to Opt-out or cease membership of a scheme û must not indicate to a potential jobholder that their decision to Opt-out will affect the outcome of the recruitment process


Steps you need to take

•  Know when you need to be ready – Staging Date, start planning 12 months before staging

•  Assessment – Staff, Costs, Existing Arrangements, Staff Contracts

•  Communication – Staff, Existing Pension Provider, Key People

•  Research – Payroll, Solution Options

•  Stage – Opt in relevant Staff, Communicate, Record Data

•  Records – Payroll Data, Opt Outs

•  Review, Diarise & Register

Auto Enrolment


Questions ??

Auto Enrolment


Kevin Cunningham Bleathwood IFA Ltd Bleathwood House

45 Upper Packington Road Ashby de la Zouch

Leicestershire LE65 1ED

01530 417943 [email protected]

Bleathwood IFA Ltd is an appointed representative of Sense

Network Ltd which is authorised and regulated by the Financial Conduct Authority

auto enrolment presentation by kevin cunningham managing ... · scheme for automatic enrolment...

Documents