One thing is certain – workplace pensions are here to stay. As an employer you have a duty to designate a workplace pension scheme into which you must automatically enrol all qualifying workers and make contributions on their behalf. The size of your workforce determines your staging date and no employer is exempt from this requirement.
For some, auto-enrolment might seem light-years away, but now that the first significant tranche of employers have reached their staging date, it is clear that capacity issues are building within the marketplace.
Should this be of concern to you? Possibly not, if along with thousands of other employers, you are happy to be left with only one choice of pension scheme. As we move through 2014 and 2015 the number of employers reaching their staging date will increase dramatically each month with numbers reaching 40,000 per month in March 2016, 60,000 in August 2016 and nearly 100,000 in February 2017, before they peak between October to December 2017 at over 130,000 employers per month.
Even if you are happy to be in such a position, we would strongly recommend that you give your auto-enrolment requirements early consideration, as compliance will not happen on its own. You will need to:
- select a suitable pension scheme
- register it with the Pensions Regulator
- assess your workforce into differing categories
- communicate with employees
- make deductions from salary for some employees
- arrange for the data and payment to be correctly allocated by the provider.
This process requires close liaison between employer, payroll, adviser and provider.
To ensure the process runs smoothly and you do not fall foul of the legislation that carries with it substantial fines for non-compliance, we suggest you start your planning at least one year in advance of your staging date.
Therefore, we would urge you not to hit snooze but set your auto-enrolment alarm early.
How we can help
Our employee benefit and payroll teams work closely together to provide a seamless service, implementing a solution that is right for you and your business.
Our step-by-step approach delivers the right kind of support, dependent on your individual requirements and budget.
It's not too late
If your staging date is looming and you have yet to act, don't worry. We have developed a streamlined proposition which will provide you with a fast track to compliance.
Stay ahead, don't get left behind...
For a complementary, bespoke report which will determine your staging date and auto-enrolment obligations, please visit our website to complete a short form and we'll do the rest.
www.smith.williamson.co.uk/auto-enrolment/scheme-assessment
We have taken great care to ensure the accuracy of this publication. However, the publication is written in general terms and you are strongly recommended to seek specific advice before taking any action based on the information it contains. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. © Smith & Williamson Holdings Limited 2014.
