Titel

Pension auto-enrolment

Publicatiedatum

28/07/2016

Categorie

Pension

Bron

Pensions Regulator

Aard

Nummer

Samenvatting

The introduction of automatic enrolment for workplace pensions is intended to ensure that the majority of employees in the UK are offered the chance to be part of a work based pension scheme. Automatic enrolment into workplace pensions has been rolling out across the UK since 2012.

However, the first batch of small and micro employers with 30 or less employers only began to enrol in the scheme on 1 June 2015. There are estimated to be 1.8 million small and micro employers in the UK. It is expected that all employers will be part of the scheme by February 2018.

The Pensions Regulator is in the process of mailing almost 100,000 small and micro employers with less than six months to go until their staging date to remind them that they need to choose a new pension scheme or check if an existing scheme can be used for automatic enrolment.

Staging dates are based on the size of an employer’s PAYE scheme as at 1 April 2012. Most small and micro employers with less than 50 employees will commence the process between 1 June 2015 and 1 April 2017. Recent research by NOW: Pensions has revealed that from April – June 2016, some 40% of employers signed up to a pension provider either very close to their staging date or after their deadline had already passed.

Employers failing to comply with their auto-enrolment duties and missing their staging date can trigger statutory notices, fixed penalties and even court action. We would urge all employers to check their staging date and ensure they are properly prepared to be able to offer their staff a pension scheme in a timely manner.

The Pensions Regulator

This month, we’re writing to over 95,000 small and micro employers with less than six months to go until their staging date to tell them it’s time to choose a pension scheme. Lower paid staff only get tax relief from the government in certain types of pension scheme, so this is one of things you’ll need to consider if you’re helping your clients choose a scheme. Find out more.

6. Choosing a pension scheme

This task should be completed 6 months before your client's staging date

Overview

If your client has staff to automatically enrol they will need a pension scheme. They will need to either set up a new scheme or check their existing scheme meets certain criteria.

Finding a new scheme

Your client will need to find a scheme for them and their staff that will work with their payroll process or software they’re using. It’s advisable that your client allows plenty of time to make the right choice. They may ask you to help them. Find more information onwhat to consider when choosing a scheme.

There are a number of different types of pension schemes available and different types of providers offering these schemes. The type of scheme most likely to be available to your client is a scheme run by a large, specialist provider that is designed to be used by many different employers. For information on ways to find a pension scheme read find a new scheme for your client.

You (eg accountants, book keepers, etc) can provide investment advice to employers choosing a pension scheme, but you need to be authorised to provide advice to individuals. If you are concerned about what level of support and guidance you are able to give, read our page about your role in helping a client to choose a scheme or watch the short animation.

Checking an existing scheme

A client with an existing pension scheme may want to use it for automatic enrolment. This scheme will need to meet certain criteria, which could involve changing the scheme rules or terms and conditions.

Check with your client’s pension scheme to see whether they can use it for automatic enrolment. Alternatively, for more information about the criteria that schemes need to meet read what to consider when choosing a scheme. If your client can't use their scheme, they'll need to choose a new one that meets the requirements for automatic enrolment.

Advanced guidance

This resource may help if you have more detailed questions on the above:

· Detailed guidance 4: Pension schemes (PDF, 341kb, 38 pages)
There are minimum requirements for schemes to qualify and to be used for automatic enrolment, and details on certification and use of schemes based outside the UK.

One in five firms missing their auto enrolment staging date

July 18, 2016

Embargoed for release: 18 July 2016

“Smaller employers are either planners or procrastinators,” says NOW: Pensions

Of the companies that signed up with workplace pensions provider NOW: Pensions in the second quarter of 2016, 40% completed their application either very close to their staging date or after their deadline had already passed.

Of these employers, 19% contacted NOW: Pensions within a month of their staging date whilst one in five (21%) left it until after their staging date had passed – the highest percentage over the recorded quarters.

At the other end of the spectrum however, over a third (34%) of firms signed up six months or more ahead of their staging date whilst over one in ten (11%) signed up three to six months in advance. Just 5% of employers took action between two and three months ahead of the deadline while 10% got their scheme in place between one and two months ahead of their staging date.

Months to staging date	Q2 2015	Q3 2015	Q4 2015	Q1 2016	Q2 2016
6 or more	30%	31%	31%	13%	34%
3 – 6	16%	12%	19%	36%	11%
2 – 3	6%	9%	10%	6%	5%
1 – 2	16%	11%	12%	9%	10%
Within a month before staging	19%	27%	15%	21%	19%
After staging date	13%	10%	12%	16%	21%

*Percentages subject to rounding

Morten Nilsson, CEO of NOW: Pensions said: “As time goes by, it’s becoming increasingly clear that when it comes to auto enrolment, smaller employers are divided into planners or procrastinators.

While it’s worrying that one in five are missing their staging date, it’s also reassuring to see that a third are planning well in advance.

Small business owners have a lot to think about and it’s easy for auto enrolment to be put on the back burner but the fines for non-compliance are steep missing the deadline can cause unnecessary sleepless nights.

Auto enrolment is complicated so the longer firms leave to tackle it, the more confident and comfortable they’ll be able to feel.

Firms that don’t comply with auto enrolment receive a 28 day warning notice. If the warning notice is ignored, a fixed penalty notice of £400 is issued.

On top of that, employers with between one and four employees, can be fined £50 a day. Those employing between 5 and 49 people can be fined £500 a day.

For more tips on what to do if you’ve missed your staging date click here.

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