Every Employer with at least one member of staff now has a legal duty to provide a work place pension (or otherwise known as Auto Enrolment) by their staging date. So what are the duties and when do you need to take action?
Firstly you need to know your staging date, and check your duties. This can be done on The Pension Regulator website. http://www.thepensionsregulator.gov.uk/en/employers/duties-checker/
Some PAYE schemes that are director onlyschemes are exempt from the new legislation, however there is a process that still needs to be completed to notify the Pension Regulator of the employment status of your directors. For employers with employees they will need to take action approx. 4-6 months in advance of their staging date.
An employer must:
- Register with the pension regulator to confirm a contact within the company. (This allows The Pension Regulator to keep you informed of your duties and send you any relevant updates) this should be done as soon as possible once you receive your staging date.
- Choose a Pension scheme (You will need to make sure your scheme is Auto enrolment compliant). This should be done 4 to 6 months in advance of your staging date.
- Work Out who to put into the pension (this is done through a payroll assessment). Payroll assessment should be done in the month you stage, and then every subsequent month.
- Automatically enrol all eligible jobholders employees who are above the earnings threshold and between 22 and state pensionable age), into the auto enrolment scheme.
- Put into the pension scheme those non-eligible jobholders who have decided to opt-in.
- If requested allow all entitled workers to join the pension savings scheme
- Provide written confirmation to the eligible jobholders have been automatically enrolled and how they can opt out and provide details in writing to non-eligible jobholders and entitled workers on the pension scheme and how they can opt in.
- Remove from scheme anyone that has decided to opt out within the opt out period and promptly refund contributions
- Declare you compliance (This must be done within 5 months of your staging date to avoid penalties and fines)
- Re-declare compliance after re-enrolment.
Employers must not:
- Induce workers to opt out or cease their membership of the qualifying Pension scheme
- Do or fail to do something which results in the worker ceasing to be in active membership whilst still employed by the employer
- Indicate during recruitment process that a workers decision to opt out of automatic enrolment will affect the outcome.
The Pension Regulator are fining companies heavily for non-compliance, so it’s important to get it right.
We can help
Speak to our friendly payroll team to see how we can assist you with your pension obligations, and take the worry out of compliance.
Contact the payroll team by completing the form on our website. Alternatively you can call us on 020 8977 3559 at our Hampton Wickoffice to speak to an adviser.
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