The new Pensions Act of 2014 requires organisations with eligible employees to implement auto enrolment into a company pension scheme. Since 2012 only those organisations with more than 50 employees in a single payroll have been required to start auto enrolment.
From 2015 organisations with less than 50 employees will be impacted and by 2017 all employers must be meeting their auto enrolment obligations.
A recent survey by The Pensions Regulator (TPR) has indicated that approximately half of SME’s due to commence this scheme next year have yet to start planning for auto enrolment.
Many of these soon-to-be-qualified businesses are without an in-house HR, Payroll or Pensions Specialist; Aspire Cambridge have developed a package that can assist businesses to assess their costs, budgets and processes to ensure they can meet their auto-enrolment responsibilities.
Whilst the regulatory body TPR will initially focus on informing and educating employers, continued non-compliance is likely to result in employers receiving a noncompliance notice, followed by fines of up to £10,000 per day. This makes effective planning of auto enrolment critical for SME’s.
What is an Auto Enrolment Pension Scheme?
Put simply, auto-enrolment is the new scheme introduced by the Government to encourage and help employees save for their retirement. It makes it compulsory for employers to enrol their eligible employees into a pension scheme, ensuring that everyone has a pension for their retirement.
Auto-enrolment is new, complicated and requires a lot of preparation. Ignorance or misunderstanding won’t stop your company from receiving a fine if you fail to introduce this new government-led scheme, so it is important that you consult with an expert to discuss the introduction of an auto-enrolment pension scheme for your workforce.
How can Aspire Cambridge help introduce an auto enrolment pension scheme?
In the first instance, one of our experienced and knowledgeable HR experts will consult with you to help you identify eligible employees and assess your business processes ahead of the introduction of an auto enrolment pension scheme.
How long it will take your business to prepare will very much depend on the payroll and pensions processes you have in place at the moment, many businesses will not have a current pension scheme (only 33% of the private sector workforce in the UK currently contribute to a workplace pension scheme). Aspire can help you find the right pension scheme for your business and help you assess your current payroll processes for auto enrolment compliance.
TPR will inform you of your staging date (the date you are required to start auto enrolment) 12 months in advance, you should start planning as soon as you know the staging date. Aspire Cambridge can develop an implementation plan for you so that you know what you need to do by when.
Once auto enrolment is in place, we can assist with ongoing maintenance, admin support and governance to ensure you remain compliant.
For more information about auto enrolment pension schemes, please get in touch with our HR experts on 01223 855441 or click here.