Pension Auto Enrolment – The clock is ticking
Have you started planning for auto enrolment?
More than two million workers have begun saving into a workplace pension scheme as a result of automatic enrolment, according to figures released earlier this year by The Pensions Regulator.
Automatic enrolment began in October 2012 and is rolling out from the largest to the smallest employers across the UK. All employers, including charities and the public sector, will eventually need to assess their workforce and automatically enrol eligible workers into a pension scheme.
As a business owner we know your to do list is ever growing, but auto enrolment will need to be on there. You might be thinking that your staging date is an age away but these things do creep up, so you will need to do some research beforehand and find the best solution for you and your employees.
As with all new schemes there’s jargon, and there are a lot of things to consider, whether you should use NEST, who your executive sponsor will be, your employee benefits strategy, what to do when someone opts out, whether employees should be opted back in or re-enrolled automatically, if you should upgrade or replace your payroll system – the list goes on.
But where should you start?
If you don’t already make contributions to a pension scheme for your staff you will need to budget for this. There’s also going to be a lot of administration involved in the setup and upkeep of your scheme, who is going to maintain this?
Even just picking the right scheme for your business will be time consuming. With so many people on the lookout for the best deal it’s a competitive market. Concerns have already been raised about the number of schemes available compared with how many businesses are shopping around. This is another reason not to put this off any longer.
Failure to provide a compliant pension will result in fines and possible prosecution. If you would like to find out more about how Leonherman can help get you ready for auto enrolment, get in touch.
We can work with you to find the best pension provider and can take on the additional administration for your payroll, giving you the time to focus on growing your business.
Do not hesitate to get in touch or call us on 0161 249 5040