hertfordshire employers workshop automatic enrolment

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Hertfordshire Employers Workshop Automatic Enrolment

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Page 1: Hertfordshire Employers Workshop Automatic Enrolment

Hertfordshire Employers Workshop

Automatic Enrolment

Page 2: Hertfordshire Employers Workshop Automatic Enrolment

Background

• What is Automatic Enrolment?

• Why has it been introduced?

• What is different to the current system for LGPS and Teachers Pension Agency (TPA)?

• Can I leave it to the pensions people?

Page 3: Hertfordshire Employers Workshop Automatic Enrolment

When does it apply from

Automatic Enrolment is effective from your staging date:

• Why has the Government given employers different staging dates?

• Do you know your staging date?• If not do you know how to find out your staging date?

Page 4: Hertfordshire Employers Workshop Automatic Enrolment

Decisions each employer must make

• Are you going to use transitional delay?

• Are you going to use postponement?

• Who is going to issue letters and communications to staff?

• Who will change the recruitment process?

• Who is going to register with The Pensions Regulator when you have passed your staging date?

Page 5: Hertfordshire Employers Workshop Automatic Enrolment

What we can do to support you?

Important to realise that Automatic Enrolment is anemployers issue.

• Suggested wording for letters;

• Posters and communication document’s; and

• Experts (staff who have lived through the process previously).

Page 6: Hertfordshire Employers Workshop Automatic Enrolment

Typical Problem Employees

• Casual employees;• Consultants;• Councillors; and• Maternity leave.

An example below employer staging date 1/4/13 recruits a new employee 1/5/13 on her 21st birthday

• 1/5/13 - Brought into scheme under scheme rules (opts out)• 1/5/14 - Auto enrolled at age 22 (opts out)• 1/5/15 - Goes on nil pay on trip of lifetime/maternity leave• 1/10/15 - returns to full pay so is auto enrolled (opts out)• 1/4/16 - Third year anniversary of staging date so is auto

enrolled (opts out)

Complaints?????

Page 7: Hertfordshire Employers Workshop Automatic Enrolment

Problem Employers

Employers with multiple schemes:

• Teachers and Local Government; • Lots of casual employees;

• Multiple payroll providers;

• Local Government plus defined contribution schemes; and • Employer where the Local Government scheme is a closed fund.

Page 8: Hertfordshire Employers Workshop Automatic Enrolment

Suggested Timetable

I have a little spread sheet to help employer keep track of communication requirements.

• Staging date;

• General steps to consider;

• Split between if you use transitional delay or not; and • Responsibility.

Page 9: Hertfordshire Employers Workshop Automatic Enrolment

Good News

Reasons to be cheerful

• The LGPS is a qualifying scheme;

• Other employers have gone through the process;

• Current practise complies with the majority of the requirements; and • Electronic opt out route being prepared;

Page 10: Hertfordshire Employers Workshop Automatic Enrolment

Bad News

Reasons to remain vigilant

• I stress it is the employers decision on who to AE and ultimately the Pension Regulator has the powers to fine employers who do not comply with their requirements;

• There will be upset staff/complaints; and

• The administration will be a pain.

Page 11: Hertfordshire Employers Workshop Automatic Enrolment

Summary

• Employers issue;

• Employer cannot issue any opt out forms;

• Need to repeat every 3 years;

• LPFA can offer assistance; and

• There will be complaints.

Page 12: Hertfordshire Employers Workshop Automatic Enrolment

Thank you

Contact details:

Neil LewinsTechnical Officer0207 369 [email protected]