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AUTO ENROLEMENT
Is a law that means every employer must automatically enrol workers into a workplace pension scheme if they:
- Work in the UK
- Are aged between 22 and State Pension age
- Earn more than £9,440 a year
Firms with between 50 and 249 employees will start auto-enrolling staff between 1 April 2014 and 1 April 2015 – and the smallest of employers with fewer than 50 staff must do so from 1 April 2017.
Employer Duties
- Assess their workforce – an employer should make an initial assessment of how their workforce is likely to look on their staging date, to work out what duties they are likely to have.
- Identify automatic enrolment earnings thresholds – employer duties differ depending on whether a worker is eligible which is partially defined by their earning
- Set up an eligible scheme to fulfil their duties – the scheme needs to meet certain
- Prepare data to send to that scheme
- Prepare information to send to their workers
- Set up their payroll processes.
- Communicate with workers
- Keep records
- Employers must be ready to comply with the new duties on their staging date.
Employers will also have an ongoing duty to maintain qualifying pension provision for workers who;
- Are already members of qualifying schemes; or
- Become members of such schemes.
- They will also need to keep records of how they have complied with their duties
- They may need to provide The Pensions Regulator with Reports
Setting up a qualifying scheme
- As part of the qualifying criteria, the pension scheme must meet certain minimum requirements, which differ per the type of pension scheme.
- The minimum requirements are based on the contribution rate and require a minimum total contribution based on qualifying earnings, of which a specified amount must come from the employer.
- Certification allows employers to calculate contributions from the first pound earned (i.e. do not use qualifying earnings in their definition of pensionable pay) to self-certify that their scheme meets the requirements.
Why start organising now?
- Companies need to establish which employees need to automatically enrolled
- How will payroll deductions work
- How will they provide information to employees?
- How will employees be informed about opt out decisions
- How will companies meet they’re on going compliance duties?
- Which pension scheme will they use
Why use Curo Wealth
- Companies without a pension scheme must pick a one
- Companies must manage the relevant contributions and communications.
We can review existing pensions arrangements and help choose a new one if required.
Your initial meeting will be completely free of charge and you will be under no obligation