The 3 hidden responsibilities of Auto Enrolment

The 3 hidden responsibilities of Auto Enrolment

In July 2014, over 10,000 companies across the UK have reached their staging date and must have all the auto-enrolment processes in place or risk being prosecuted for non-compliance. The Pension Regulator has released over 500 pages of guidance for business owners to process before their staging dates. Businesses have found the task much more complex and time consuming than they first believed.

There are 3 hidden responsibilities that businesses should consider several months before their staging date.

  1. Capacity Crisis

With over 1.2 million businesses approaching their staging date many pension providers are struggling to keep up with the demand, with some closing the door for new customers.  It’s essential to get ‘in the queue’ early to ensure that you can meet the compliance timetable.

  1. Responsibility worry

The responsibility of choosing a pension provider who will look after the financial futures of an entire work force is substantial. Therefore, it is important to choose a pension provider who fully understands the needs of your business and together develop an investment plan that offers the best returns over the next 40 years.

  1. Limiting costs

From April this year the government announced a price cap on pension charges of 0.75%.  However, providers are still allowed to use various pricing plans.  The different plans have a bearing on the cost to you, your employees and ultimately the contribution to your employee’s pot so it’s key to choose the right pension provider and plan for your business and employees.

All in all there are 33 different administrative tasks for businesses to complete ready for their staging date.

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