It is hard to believe that ‘new’ workplace pension legislation started rolling out in 2012! By the end of March this year over 7 million workers had been automatically enrolled into a workplace pension. It is expected that all employers will be part of the scheme by the end of February next year.
Auto enrolment was instigated to encourage employees to start making provision for their retirement with employers also contributing to make a larger pension pot.
New figures, in the annual report published by the Pensions Regulator (TPR) reveal that that between April 2016 and March 2017 the TPR used their formal powers on 50,068 occasions, a 41,256 increase on the number of powers used in 2015-16. This included the issue of over 33,000 compliance notices, over 12,000 fixed penalty notices and 2,527 escalating penalty notices. The TPR was clear that a lot of this increase was due to more small and micro employers coming on board.
I’m not sure I’m compliant, what do I need to do?
Making sure you meet all your legal obligations is easier than you think.
- Find out your staging date (the date your scheme needs to be in place by.) Watch our short guide about how to easily find this – or contact us.
- Choose a pension scheme (or check your existing one.) We have been working with clients for some time now to make sure they have a scheme up and running by their required ‘staging date.’ Be careful of the many companies trying to sell a very expensive service which probably isn’t relevant to you as a small employer. There is no need to pay out large sums of money for Auto Enrolment. We are confident that as well as efficient, our Auto Enrolment service is extremely cost effective.
- Work out who to put into a pension scheme. Do this by your staging date. This is an “assessment” and will need to be done before the start (staging) date and every time payroll is run thereafter. Again, we can help you to identify this.
- Write to your staff. Do this within 6 weeks after your staging date.
- Declare your compliance. Do this within 5 months after your staging date.
Don’t worry if this all sounds daunting. Our friendly and efficient team are here to guide you through the process and ensure each payroll run is handled correctly.
Call us today to find out more about our cost-effective payroll and workplace pension services.