Wondering what auto-enrolment is all about? You’re not alone! We’ve put together answers to some of the most common questions to help you get to grips with this important aspect of workplace pensions. Let’s dive in!
What does auto-enrolment mean?
Auto-enrolment means that employers are required to automatically enrol eligible employees into a workplace pension scheme. It’s a way to ensure employees are saving for retirement, with both the employee and employer making regular contributions. This process can be managed by your Payroll team or outsourced to specialists who provide auto-enrolment services.
Who does auto-enrolment apply to?
All employers must provide a workplace pension for their employees.
Employers must automatically employees if all the following apply:
- You’re classed as a ‘worker’
- You’re aged between 22 and State Pension age
- You earn at least £10,000 per year
- You usually (‘ordinarily’) work in the UK
Employers don’t have to automatically enrol employees who don’t fall into the above category, but they do have to offer a pension scheme to them as they may wish to opt in.
Is auto-enrolment a legal requirement?
Yes, auto-enrolment is a legal requirement for all UK employers. Employers must automatically enrol eligible employees into a pension scheme and make contributions to it. Failure to have the correct auto-enrolment solutions in place can result in penalties from The Pensions Regulator, so it’s important for businesses to stay on top of their obligations.
How do I manage my re-enrolment duties?
Employers must re-enrol staff who left their pension every three years. They can choose any date within a six-month timeframe, starting three months before and three months after their anniversary date. A re-declaration of compliance will need to be submitted to The Pensions Regulator five months after their third anniversary date, even if they had no staff to re-enrol.
What are the benefits of auto-enrolment?
Compliance with the law: Auto-enrolment is a legal requirement, and a dedicated advisor ensures your business meets all deadlines and regulations to avoid penalties.
Reduced risk of errors: A dedicated advisor ensures accurate handling of sensitive employee data, reducing the risk of mistakes and saving you time.
Efficient implementation and ongoing support: From initial setup to ongoing adjustments, an advisor provides continuous support to keep your auto-enrolment scheme running smoothly.
Time and resource savings: Outsourcing auto-enrolment to an expert frees up time and resources, allowing your team to focus on growing the business.
Tailored solutions: A dedicated advisor offers customised solutions based on your business’s size, industry, and workforce to ensure the right fit.
Leave it to us…
Auto-enrolment may seem like just another administrative task, but the implications for non-compliance or errors can be significant. A dedicated auto-enrolment advisor gives you peace of mind, knowing your business is meeting its legal obligations and your employees’ pension plans are in safe hands.
Want to learn more? get in touch with a member of our team on 01942 816512 or email:
Kirsten Croston, Payroll Manager: [email protected]
