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Transcript of Automatic enrolment Supporting you every step of the way Presented by Simon Taylor | Pearson...
Automatic enrolment
Supporting youevery step of the way
Presented bySimon Taylor | Pearson Hinchliffe Pensions Specialist
■ Background to reform
■ Employer action plan:− What they need to do?− When they need to do it?− Who must they do it for?− How will they do it?
Choosing a pension scheme
Contents
Do I need to do it?
How much will it cost?
Any way out?
The Employer Duties
For professional advisers only
Automatic enrolment & the new employer duties
“The employer must make prescribed arrangements by which the jobholder becomes an
active member of an automatic enrolment scheme...”
The Pensions Act 2008 Section 3(2)
Source: Pensions Act 2008, Office Of Public Sector Information – www.opsi.gov.uk.
TPR 7-step checklist
7. Contribute to your workers’ pensions
6. Register with the Pensions Regulator and keep records
5. Automatically enrol your ‘eligible jobholders’
4. Communicate the changes to all your workers
3. Review your pension arrangements
2. Assess your workforce
1. Know your staging date – when to act
For professional advisers only
The rules
How much do I have to pay?
Defined Contribution – will be phased in to:
8% ‘Qualifying Earnings’ total
3% ‘Qualifying Earnings’ employer minimum
Jobholder can be required to make up the difference
‘Qualifying Earnings’
Between £5,564 - £42,475*
Includes overtime, SSP, SMP etc
* Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2012
Admin duties
Employers MUST Employers MUST NOT
Auto enrol and re-enrol/deduct payments
Register/re-register their scheme
Provide information to eligible and non-eligible jobholders Provide information to scheme/provider
Process opt outs/make refunds
Keep records
Discourage membership
Give jobholders the opt-out form
Encourage opt-outs
Use ‘Prohibited recruitment conduct’
Give advice
Sources: Pensions Act 2008, The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.
Or else...
Compliance/unpaid contribution noticeStage 1 - Warning
Fixed penalty - £400Stage 2 – ‘Wake up call’
Escalating penalty
Workers Penalty per day1-4 £505-49 £50050-249 £2,500250-499 £5,000500+ £10,000
Stage 3 – Persistent offenders
Sources: Pensions Act 2008, Chapter 2, The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.
For professional advisers only
Doing nothing is not an option...
“A person guilty of an offence under this section is liable -
a) on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or both;
b) on summary conviction to a fine not exceeding the statutory maximum.”
The Pensions Act 2008, Section 45(2)
Source: Pensions Act 2008, Office Of Public Sector Information – www.opsi.gov.uk.
Employer choice:
Automatic Enrolment Schemes
Automatic Enrolment Scheme
Private Scheme
NOW: Pensions1
The People’s Pension2
1NOW:Pensions, marketed by ATP2The People’s Pension , marketed by B&CE
What people think:
About NEST
plus 1.8% contribution charge
Government run
Cheaper than a private scheme
1 2012/13 terms
0.3% amc
One size fits all
Maximum contribution £4,4001
Limited investment choice
No transfers in or out
No trustee discretion on death
What it is:
EmployerLess admin
Added extras
ProviderAdviser
Auto-enrolment system
Building on NEST
Staff appreciationCompetitive edge
AdviserInvestment advice
Scheme designAuto-enrolment Certification
Ongoing reviews
ProviderInvestment options
Technical supportImplementation supportBenefits admin. platformMember communications
Benefits systemsHR systems
For professional advisers only
Summary
Step 1 – Design a solution
Step 2 – Implement the changes effectively
Step 3 – Run the scheme in the most efficient way
Scottish LifeScottish Life
Thank You
Any Questions?
Contact Me:
Simon Taylor0161 785 [email protected]