1. What is Auto Enrolment?
Auto Enrolment is a new legal requirement for all employers to provide a pension to eligible employees. All employees over age 22 and below State Pension Age, who work or ordinarily work in the UK, must be enrolled into a pension scheme as long as they earn over a certain amount per week or month.
2. Why has Auto Enrolment been introduced?
The government wants to improve pension saving in the UK. As a nation we are all living longer, and will spend more time in retirement. Therefore, the Government believes it is important that individuals make pension arrangements to supplement their state pension in retirement.
3. Can I get help to make sure my employees receive the communication required for auto enrolment?
Yes. We will undertake all of your statutory communication obligations for all workers.
4. Can I give my employees any incentive to opt out of our pension scheme?
No. It is against the law to provide incentives to encourage workers to opt out or to threaten them with any consequences if they do not do so.
5. What is my Auto Enrolment staging date
You can find your staging date by visiting the Pension Regulator website.
6. Can I postpone starting the scheme?
You need a scheme in place for your staging date. (The staging date is the date that you are due to commence auto enrolment). However you can postpone commencement for up to three months if you wish.
7. Can I see copies of letters and communications that you will use?
Yes. We will provide a copy of the communications we send to your employees about the scheme. Once enrolled the pension provider will issue joining packs direct to your employees.
8. Do I have to provide the same pension scheme and contributions for all my employees?
No. You can provide different schemes and benefit structures to different groups of workers as long as you provide all workers with at least the minimum requirements.
9. Do I take the pension contribution before or after tax is calculated?
Both methods can be accommodated, although we normally recommend that contributions are made from gross pay, as tax relief is immediate, and all of the funds will get to your employees individual pension pot faster
10. Does all the money get paid back if members opt-out?
Yes. If an employee opts-out within the time frame prescribed in the regulations. After this period has elapsed an employee can cease to be a member, but any contributions made will not be refundable.
11. When do I pay my contribution towards the pension fund?
Statutory rules apply to when contributions deducted need to be paid to the scheme. Employee and employer contributions are normally due on or before the 19th of the month following the month in which deductions were made.
12. Does the process get easier?
The initial work is more complex as it involves setting up and implementing the scheme, and collating and assessing all of the employee information. Then the work required is to continue assessing staff, and calculating pension deductions at every pay run, together with ensuring new starters and leavers are dealt with correctly. As employees circumstances change, so might their status within the scheme. It is therefore vital that the workforce is continually assessed at each pay run.
13. Can I use your service if I do not have a suitable payroll system?
Yes, but we must either provide a payroll bureau service, or you must invest in a suitable payroll package..
14. Are we financial advisers?
No. We are providing an Auto Enrolment Solution and compliance service. We can recommend Independent Financial Advisers should you wish us to do so.
15. Do we give individual advice to your employees?
No. We are providing an Auto Enrolment Solution for you as an employer.
16. Can my business claim tax relief on contributions?
Yes. Auto enrolment contributions from an Employer are an allowable business expense.