Auto Enrolment Facts and Frequently Asked Questions

Here are a list of our customers most frequently asked questions on Auto Enrolment

We are committed to ensuring that all employers are informed and receive the expert advice and support to ensure they adopt the best workplace pension scheme for their scheme for their business and employees

FAQ’s Employers without Pension Scheme

What duties do I need to perform?

Here are the main duties you’ll need to manage to be compliant;

  1. Source and set up a suitable workplace pension scheme for your business
  2. Automatically enrol all eligible employees into your scheme.
  3. Enrol any other employees who aren’t eligible, but ask to join.
  4. Communicate with your workforce to let them know what’s going on and what their options are.
  5. Start making pension contributions for the members of your scheme.
  6. Remove any automatically enrolled employees who decide to opt out of your scheme.
  7. Submit a declaration of compliance to The Pensions Regulator and continue to check the rest of your workforce ongoing to see if you need to contribute for them, when their circumstances change.
  8. Keep records and re-enrol employees back in who’ve opted out every three years.

When do I need to start performing my duties?

Your auto-enrolment duties come into effect on what’s known as your ‘staging date’.
By this date, you’ll need to have a suitable workplace pension scheme in place, and to have assessed your workforce. The Pensions Regulator will tell you what your staging date is 12 months in advance.
Alternatively, you can click ‘Find your staging date’ and we will let you know when it is.

 

Who do I need to enrol?

Everyone in work aged between 22 and state pension age who earns more than £10,000 a year (this amount will be reviewed each year), and who isn’t already in a workplace pension scheme. Workers who aren’t in that group can opt in, if they wish to.
Anyone who is at least 16, but under 75, earns more than £5,824 a year and asks to be enrolled, can join the scheme and their employer has to pay a minimum contribution too. Businesses will also need to enrol any workers aged 16-74 who earn less than that, and who ask to be put into the scheme, but they don’t need to pay contributions for them.

 

Can I put my staging date back?

Your staging date is set in law. You cannot delay your staging date.You can, however, postpone some of the things you’ll need to do by up to three months so they fit in better with your business. This is called ‘postponement’.
Alternatively, you can choose to bring forward your staging date, but you will need to let The Pensions Regulator know at least one month before the revised date.

 

Will I have to pay contributions into the scheme?

Yes. By law, you’ll need to make contributions for any eligible and entitled jobholders who are in your scheme.
How much gets paid in depends upon which basis of contributions is selected by you as the employer, either banded earnings or basic salary. For banded earnings, the total minimum contribution was originally set at 2% of a worker’s gross earnings (of which at least 1% must be paid in by the employer), rising to 8% from April 2019. That is 3% from the company, up to 4% from the employee, and 1% tax relief. These percentages don’t apply to all of an individual’s salary, but only to what they earn over a minimum (currently £5,824) up to a maximum limit (currently £43,000).
If basic salary is the chosen basis, the employer contribution is set at 2% rising to 4% from April 2019.  The Pensions Regulator has set minimum contribution levels that all employers need to pay, which will gradually increase between now and April 2019. You can pay more than these minimum levels if you wish, but you’re not allowed to pay less.

 

I need a pension scheme, where do I start?

We have designed a 3 stage process to help you through automatic enrolment;
Stage One : Fact-finding & Recommendations
In the first instance we will meet with you to gain an understanding of your business and your circumstances. We will gather information on your existing arrangements, such as salary data, staff numbers and any existing benefits that you provide to your employees. The whole process is carried out confidentially and any data obtained is used solely to provide you with our advice and recommendations. We will then provide you with a written report which will recommend exactly what you need to do and when. This will include a cost analysis and identify any operational risks, such as payroll and back office systems. Our report will also include recommendations (where applicable) to reduce the cost of contributing to your employee’s pensions.
Stage Two : Scheme Implementation & Staff Presentations
Once you are happy to proceed with our recommendations we will arrange to get the scheme set up and agree dates with you for carrying out the staff presentations and one to one meetings.
Stage Three : Ongoing service
Although you don’t have to use our ongoing service, we recommend annual reviews whereby we can visit you and your employees to make sure that the scheme is running the way you want it to. We can also meet any of your employees who have questions about their pensions and of course any new employees who have joined the company after the pension scheme was set up.
For more detailed information, download our free guide to Workplace Pensions & Auto-Enrolment by following this link.

 

Can I get help to set up my scheme and communicate the changes to my employees?

We can set up your scheme for you and take all the hassle off your shoulders, providing you with peace of mind that you will end up with a solution that will work well for both you and for your employees.
One of our key services at Moore Stephens is to ensure that your employees fully understand the new rules and how your pension scheme applies to them. We provide group presentations, information packs and one to one meetings to ensure that the scheme is explained thoroughly and recognised a key benefit provided by you as their employer.
We can offer plenty of support to help make the process as easy as possible for you:
Call us on: *01536 462700 and we’ll be happy to offer you advice and information that will help explain your duties and options.
*Our lines are open Monday to Friday, 9am to 1.00pm and 1.45pm to 5pm.
If you would like us to find the best workplace pensions scheme for your business, please call one of our friendly advisers on 01536 462700 to start the process or complete the form here and we will get back to you shortly to offer our support.

 

FAQ’s Employers with a Pension Scheme

Does auto-enrolment affect my business?

Auto-enrolment affects all employers with staff in the UK, even if you employ just one person. However, if you don’t employ anybody (for instance, if your company has a number of shareholding directors, none of whom has an employment contract) then auto-enrolment may not apply to you.

 

Is my existing scheme compliant with the new workplace pension rules?

Your existing scheme may be compliant with the new rules, particularly if has been set up recently, but many employers are being told by their existing scheme providers that their pension arrangements are not compatible with the new workplace pension rules and that they will need to set up a new scheme.

 

How do I know if my scheme is suitable for auto-enrolment?

We will be able to advise you if your current arrangements are suitable and if not, it will be possible to set up a new scheme that will not only comply with the new rules but in most cases offer better terms than your existing scheme.

 

We already have a pensions scheme, are we exempt from the auto-enrolment rules?

Even if you already offer a pension scheme, you can’t assume there’s nothing you have to do. Your existing pension scheme has to meet the government’s “suitability” rules. That is, it has to be capable of communicating with your payroll systems and enable you to send automatic reports to The Pensions Regulator (TPR).

 

I’m not happy with my workplace pension scheme. Can I change it?

Yes, an employer has the right to choose the own workplace pension scheme for their business and there is no obligation upon employers to contribute to a scheme of the employees choice. In order to minimise and streamline administration, employers will wish to select a scheme that is hassle free and easy to use.
Our experience of having helped more than 300 businesses to set up their new workplace pension schemes, will help to ensure that you end up with a solution that best suits your needs. We are completely independent and know all the different providers in the market (the good and the bad) and so our knowledge will ensure you get the best scheme available for your needs and requirements.

 

Can I get help to communicate the changes to my employees?

One of our key services at Moore Stephens is to ensure that your employees fully understand the new rules and how your pension scheme applies to them. We provide group presentations, information packs and one to one meetings to ensure that the scheme is explained thoroughly and recognised a key benefit provided by you as their employer.
We can offer plenty of support to help make the process as easy as possible for you:
Call us on: *01536 462700 and we’ll be happy to offer you advice and information that will help explain your duties and options.
*Our lines are open Monday to Friday, 9am to 1.00pm and 1.45pm to 5pm.
If you would like us to find the best workplace pensions scheme for your business, please call one of our friendly advisers on 01536 462700 to start the process or complete the form below and we will get back to you shortly to offer our support.

 


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