Auto-Enrolment: Plan in Advance

The benefits of forward planning:

1. Budgeting and Cost Control: It is likely that Auto-Enrolment will bring extra costs to your business. If you plan in advance and are aware of your costs then it is much easier to budget for the changes. To meet these costs you could adjust your prices, constrain salary/wage rises or find another source. If these are your plans, consider when you will put these into action.

2. Communicating with your employees: The key to a successful pension scheme adoption or change is to carefully plan communication with your employees and to prepare for subsequent questions and concerns. You should start to plan your internal communication strategy now.

3. Managing any risks: With a major change in company procedures comes a risk of errors and fines. By planning now you can reduce your risk.

4. Peace of mind: By planning your pension scheme implementation in advance, you can be safe in the knowledge that the changes are more likely to run smoothly with less complications.

Your legal obligations:

From 1 October 2012 and the staging dates thereafter, if you are an employer with at least one employee then you are legally obliged to:

  • Set up and register a pension scheme suitable for automatic enrolment
  • Automatically enrol certain workers (known as eligible jobholders) into that pension scheme
  • Arrange membership of a pension scheme for certain other workers
  • Make contributions for eligible jobholders and certain other workers
  • Manage the automatic enrolment, joining and opt out processes
  • Provide specific information to workers, pension scheme providers and The Pensions Regulator (TPR)
  • Keep records of how you have fulfilled and continue to fulfil your duties

Complex issues to be addressed:

There are several factors that may lead to greater complexity in the Auto-Enrolment process. Consider if the following factors relate to your business:

  • High staff turnover
  • Little or no existing pension plan
  • Fluctuating revenue
  • Staff on zero hours contracts
  • Low paid staff with fluctuating earnings
  • Internationally mobile staff
  • Workers whose employment status is not clear
  • Where other benefits are based on being a member of a pension scheme

Should any of these issues relate to your business then you are urged to start planning for Auto-Enrolment without delay.

Free Guides to Auto-Enrolment to Download, Print and Share:

The following guides have been co-written by our wealth management and payroll departments, specifically for employers, with the ultimate aim of ensuring that you start to prepare now to meet your duties under Auto-Enrolment and are ready to comply with the obligations when your staging date arrives.

Auto-Enrolment Detailed Guide for Employers Part 1 MC Auto Enrolment Part 2 2017 Update Front Cover

Auto-Enrolment Services:

Part 1 - A Unified Solution for Employers

Click here or on the image above to download the free guide

The Workplace Pension Reforms:

Part 2: Auto-Enrolment - A Guide for Employers

Click here or on the image above to download the free guide

Further Information - Contact our Auto-Enrolment Team:

For further advice specifically regarding your pension scheme obligations and Auto-Enrolment, contact Mitchell Charlesworth’s pensions and investments division.

For specific advice regarding the administration of Auto-Enrolment and your payroll function, contact Mitchell Charlesworth payroll services.

Mitchell Charlesworth Wealth Management - Pensions & Investments:

Richard Penn Preferred Mirror Richard Penn
Pensions and Investments Consultant


Call: 0151 255 2300
Email Richard
Twitter: @MitCharlesworth

   
Mike Wall Mike Wall
Pensions and Investments Consultant


Call: 0151 255 2300
Email Mike
Twitter: @MitCharlesworth


Mitchell Charlesworth Payroll Services:

Ken Davies Ken Davies
Director of Payroll

Call: 0151 423 7500
Email Ken
Twitter: @MitCharlesworth
   
Jo Nieman Joanne Nieman
Payroll Manager

Call: 0151 423 7500
Email Joanne
Twitter: @MitCharlesworth

 

 

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