AUTO ENROLEMENT

  • 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