On 1 October 2012, the government introduced new pension legislation for businesses. Under the rules, employers have to automatically enrol eligible workers into a company pension scheme, if they aren’t already in one.
You need to start performing these duties from what’s known as your ‘staging date’, although there is an option to postpone some duties by up to three months.
For the vast majority staging dates have now passed and it is only new start up business who have to take these matters into consideration. There are obviously still rules which need to be followed with the new staff members joining the company and the three-year reviews which need to take place. So, the impacts of non-compliance must still remain at the forefront of employer’s minds.
The Pensions Regulator can issue compliance notices requiring you to take steps to remedy the breach. If a breach is not remedied it may result in the issue of a fixed penalty of £400, as well as escalating daily penalties.
The escalating penalties are based on the number of employees you have. The amount of the daily penalty ranges from £50 per day, if you have between one and four employees, up to £10,000 per day, if you have more than 500 employees.
It’s better to get a clear understanding of the new pension rules before you start the planning process and it is essential to remain ahead of the game going forwards.
At MN Consultancy we will take you through a step by step guide to complying with ‘your’ auto enrolment requirements, allowing you to get fully up to speed with what needs to be done and when by.
We will advise you on the most cost-effective way to carry out auto enrolment and will provide you with a clear project plan, outlining what needs to be done, by whom and by when.
Our services include:
1. Pension Scheme Advice – We will help you select a compliant pension scheme and advise you on features such as deciding contribution levels and eligibility criteria.
2. Set Up & Implementation – we advise and assist with the implementation, ensuring a smooth process and we’ll also help you with one of the most important and personal parts of the auto enrolment process, communicating the changes to your people.
3. On-Going Support – We provide ongoing support to your business, including monitoring your auto enrolment process, answering your questions and employee queries and keeping you compliant. We also help you report back to the Pensions Regulator.
We act as your Pensions Manger, taking you through the whole process painlessly.
Although you may already have a scheme in place, the employer remains responsible to ensuring the scheme is compliant, offers the members value for money and above all is providing sector average fund performance or above.
AUTO ENROLMENT ADVICE TO AN EMPLOYER IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. THE SCHEMES ARE INSTEAD REGUALTED BY THE PENSION REGULATOR.