Our Auto Enrolment Services – providing a compliant and thorough solution to your business.
What is Automatic Enrolment?
The law regarding workplace pensions has changed, every employer with at least one member of staff now have to have a workplace pension scheme set up and enrol those who are eligible and contribute into this for them.
It is called automatic enrolment because it is automatic for employees – they don’t have to do anything to be enrolled into the employer’s pension scheme. It is solely the duty of the employer to ensure that any eligible staff are enrolled.
As an employer you will receive letters from The Pensions Regulator (TPR) confirming your staging date and asking you to advise them of a contact, you will then be contacted on a regular basis until your staging date is due.
The Premier Partnership can offer a package where we would:
- Become your TPR contact.
- We would arrange to source a suitable pension scheme for your workforce,
- Set up the pension scheme,
- Explain to your workforce by way of presentations and correspondence, why Auto Enrolment, the affect it will have on them, their fund choices etc.
- Ensuring the employer has the correct correspondence to send to eligible, non-eligible and entitled employees.
- Ensuring the employer has correspondence to include in future contracts.
- Ensuring the employer has correspondence in order to increase/decrease their contribution levels (still staying within the government guidelines).
- Arrange one to ones for any queries that may crop up after the presentations.
- Complete The Pensions Regulator compulsory Declaration within 5mths of staging.
- Provide advice and back up to both employer and employee throughout the staging process.
We would then be in a position to administer the scheme this would include:
- Joining all eligible employees to the scheme.
- Joining all Non Eligible and Entitled members that have requested inclusion.
- Arranging submission to the provider of the monthly contributions based on the figures agreed with employer’s payroll department.
- Ensuring the Opt Out list is checked each month and payroll notified.
- Providing the scheme with leaver information to ensure the correct letter is sent to the member.
- Provide an Auto enrolment/Pensions helpline in working hours for employees and employers.
- Arrange a minimum of one pension surgery a year to discuss any pension transfer, retirement, fund and contribution related queries.
Opting out under the automatic enrolment legislation only applies to eligible jobholders, who have been automatically enrolled and non-eligible or entitled members who have opted in but then change their minds.
The Employers have no right to opt-out of their duties.
Automatic re-enrolment occurs every three years after the staging date and is a repeat of the duties that the employee carried out at the staging date – or deferral date if the employer postponed the original staging date.
Therefore any employees that Opted Out will be enrolled back into the scheme and, should they wish to opt-out again, will have to go through the same procedure as three years prior.
Opting Out is something that CANNOT be processed by the Employer nor is this something that can be encouraged, or incentives given to encourage Opting out.
The amount you must contribute to the pension scheme is determined by the scheme’s rules (if employees are contractually obliged to pay into the pension scheme this may be at a higher rate for both employer and employee), however, if you’re using the scheme for automatic enrolment there are minimum contributions you must pay.
Minimum contributions are being introduced gradually over time. You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings.
Employees may contribute more than the minimum amount, however the employer does not have to match this.