Pensions Automatic Enrolment services | workplace pension processing

Automatic Enrolment provides some responsibilities for all businesses – even those that don’t employ staff. If you are an employer then it pays to get on top of these responsibilities quickly – and of course we can help.


Even if you only employ directors, you may have qualifying staff amongst them. Or you may have lots of directors but none qualifying. We can clarify this for you so that you know your duties.


For employers, the time that is involved in complying with these new obligations is often a great concern. Research by pension providers shows that many SME and micro employers will be looking for a solution to compliance that does not involve expensive consultation with financial advisers.


We are happy to have a free no obligation advice call for employers who are simply looking for help understanding how Auto Enrolment will affect them.

What is Automatic Enrolment?

Every employer is required to have a workplace pension scheme in place.


You will also have to automatically enrol certain workers into that scheme and make contributions on their behalf.


There is certain information that you will have to provide employees about their options. Even those who opt out must be entered into the scheme and then make a decision based on objective information.

Does Automatic Enrolment apply to you?

Automatic Enrolment duties generally apply if workers in your business have either a contract of employment or Service Level Agreement (SLA). This can include board members for example.

Do I need to set up a workplace pension?

By now it’s fairly well known that in general all employers need to comply with Automatic Enrolment. There are some exceptions, such as limited companies whose only employee is the sole director. (For a detailed list go to www.thepensionsregulator.gov.uk). 

 

Some employers – those that never pay over the Auto Enrolment trigger could comply with the regulation but not actually set up a pension. We recently looked at a client with 5 workers:  3 directors all earn £695 a month and 2 part-time assistants earn £350 and £450 a month respectively, so nobody is going to trigger Auto Enrolment. The company is required to comply with Automatic Enrolment but this compliance does not require the set-up of a pension. 

 

The employer in question is proposing to meet its staging duties by writing a comprehensive letter to all workers explaining all the categories of worker and their right to opt-in. They will complete an assessment of workers on the 1st payroll which includes the staging date. A certificate of compliance will be sent to The Pensions Regulator (TPR). The company will have met its statutory duties but will not have actually set up a pension, which it will never need. 

 

There is a rider to this solution which must be understood: Should anyone decide to opt in or a new worker joins who is over the trigger point, the company has 6 weeks to set up a scheme and enrol that worker. We would also suggest that assessment be set up in payroll to ensure that any change is automatically picked up because ‘out of sight out of mind’ could prove very costly.

 

See our Automatic Enrolment compliance service for details of how we can monitor your ongoing compliance.

Automatic Enrolment compliance service

We have helped numerous clients with their Automatic Enrolment duties and we liaise with The Pensions Regulator on their behalf as required; so we know about the various scenarios that could apply to your business.

There are three key ways in which we can help:

Initial set-up

We can help you to set up your company’s pension scheme, communicate it to your staff and enrol those who need to be enrolled.

Ongoing monitoring and management

Auto Enrolment pensions management, costing just £3 per month to ensure pensions compliance. This includes assessment of whether or not any staff newly qualify for Automatic Enrolment, pensions administration for those who are in the scheme and checking of the position of the company with regard to any starters and leavers. Also all necessary communication with staff.

AE Fast-track

If you are new to Automatic Enrolment and / or have not yet begun meeting your obligations, this service may be the most appropriate. It includes:

1.   Set-up of the pension scheme with People Pension, or your own choice of provider.

2.   Set-up pension portal in line with payroll.

3.   Setting up the pension in payroll, matched to the appropriate provider.

4.   Completion of statutory communications to all staff at Staging Date.

5.   Completion of Certificate of Compliance.