Auto enrolment relates to legislation introduced by the Government to help workers save for their retirements. All employees are required to be enrolled into a qualifying workplace pension scheme if they are not already in one.
The employer is required to contribute a minimum of 2% of each employee’s qualifying earnings from April 2018. This 2% is to be met with a 3% employee contribution which meets the minimum 5% contribution target.
Employees must be automatically enrolled when they meet the following:
- Aged between 22 and 65
- Earnings over £10,000 (2017/2018 tax year) a year to include basic salary, plus commissions, overtime and bonuses
- Working or ordinarily working in the UK
- Including part-time and contract workers
If a worker does not fit into the above criteria, they still have the right to join a qualifying workplace pension. They just need to inform their employer that they would like to “opt in” and they must be allowed to do so.
How can we help you?
Our bespoke service is designed to provide you with in-depth information to enable you to understand how you can manage your current pension scheme or set up a new qualifying pension scheme. We also believe it’s extremely important that employees understand the legislation, the impact this has on them and what options are available to them. By doing this employees are more able to make clearer decisions and employers are meeting their duties around employee engagement, particularly if challenged in the future.
We can provide:
- An analysis of your current scheme and offer options that can be tailored to suit your specific requirements
- Information to enable you to manage the costs between now and your staging date
- A dedicated team to handle all types of technical and ongoing member communication and support issues
- Qualified financial advisers that can help employees make investment decisions
- Appropriate systems to help with the administration of running your scheme
- Guidance on legislation changes and how they might affect you and your scheme
- Governance management support
- Bespoke fee agreement
Where we process your payroll, our outsourcing team will:
- Assess the workforce to see who is eligible, non-eligible and entitled
- Calculate contributions
- Provide an upload file for the pension provider
Auto enrolment need not be an arduous task and we would be delighted to guide you through every step of the process in order to help you understand and prepare for your employer duties.
For more information and help from our advisers, please contact us using our enquiry form.