automatic enrolment - are you ready?
TRANSCRIPT
Friday 13th November 2015
Agenda
Introduction to Automatic
Enrolment
Your Employer Duties
Automatic Enrolment in
practice How we can
help you
Introduction and background
Flat rate state pension
Increased state retirement age
Diminishing final salary scheme
Removal of Default
Retirement Age
State Pension Timebomb
What is Automatic Enrolment
Who will be affected?
• All employers• Larger organisations have now staged. • Those with less than 30 employees are due to stage from 1 June 2015
to 1 April 2017
Employer duties
1
2
3
4
5
Get ready and be prepared
Operate a qualifying pension scheme
Automatically enrol certain workers
Make contributions into the pension
Communicate with employees
Get ready and be prepared
• Confirm your staging date• Visit The Pensions Regulator website
www.thepensionsregulator.gov.uk/employers/staging-date.aspx
• Option to defer enrolment of staff by up to 3 months• Company postponement • Bringing your staging date forward
Operate a qualifying pension scheme
• Check existing arrangements • Review the market for a suitable solution • Pension supplier market • Appoint a pension supplier• Implement the scheme by your staging date• The scheme must operate at an Annual Management Charge of 0.75%
or less • Default investment choice in place
Automatically enrol certain workers
Staff type Age band Earnings Enrolment Duty Employer Contributions
Eligible jobholders22 –State Pension Age (SPA)
£10,000+Must be
automatically enrolled
Non-eligible jobholders
16 – 21 orSPA – 74 £10,000+
Have a right to opt in16 – 74 Above £5,824 but
below £10,000
Entitled workers 16 - 74 Up to £5,824 Have a right to join
Make contributions into the plan
Employer Pays Employee Pays Total
Up to 30th Sept 2017 1% 1% 2%
From 1st Oct 2017 to 30th Sept 2018 2% 3% 5%
From 1st Oct 2018 onwards 3% 5% 8%
Statutory minimum contributions are based on an individuals Qualifying Earnings*
*total earnings between annual earnings of £5,824 and £42,385
Alternative contribution options
• Pensionable earnings:- Set 1 Basic pay- Set 2 Basic pay where it represents 85% of total pay- Set 3 Total pay
Employer Pays Employee Pays Total
Set 1 4% 5% 9%
Set 2 3% 5% 8%
Set 3 3% 4% 7%
Communicate to workers
• Optional pre–staging date announcement• Company postponement notice if applicable • Statutory assessment outcome communications• Enrolment pack from pension supplier with opt-out detailsAdditional communications could include:- Staff presentations- Webinars- Posters- Payslip inserts
Working together - Break
Automatic Enrolment in practice
• Assessments will need to be conducted each pay period • Recorded and evidenced• Options for assessments include:
- Payroll- Pension Supplier - 3rd Party
Changes on payroll
• Communications will need to be issued when:- New employees join the payroll- Employees on the payroll turn 22 and become Eligible - Employees whose earnings increase due to a pay spike
Post staging date responsibilities
• Engagement with your pension supplier• Managing opt-out requests• Completion of your Declaration of Compliance• Agreeing a new joiner process
Future governance and oversight
• Annual review of the pension scheme• Re-enrolment • Re-registration
How can Lucas Fettes help you
• Tailored services to meet your needs• Guidance and support in meeting your new duties • Support for you and your employees• Services can be provided face to face or over the phone
www.easyasae.co.uk
Summary
Introduction to Automatic
Enrolment
Your Employer Duties
Automatic Enrolment in
practice How we can
help you
