Workplace Pensions
As a UK employer of any size, workplace pension auto-enrolment is a legal requirement that mandates you to automatically enrol eligible workers into a qualifying workplace pension scheme and make contributions on their behalf.
At Markland Hill Wealth, we have a team of advisers who have assisted firms with all aspects of auto enrolment, including setting up new schemes, switching schemes, firm mergers and acquisitions, and dealing with the Pensions Regulator in the event of non compliance.
There are different rules that you have to be aware of as an employer. They start with categorising your workers into who is eligible for a pension contribution from your firm, who is entitled to join voluntarily, and who is not eligible.
You will then need to learn your staging date (the date by which you need to comply with auto-enrolment duties). This will depend on the size of your PAYE scheme as of April 2012.
If you started your business after this date, you will have different duties start dates based on when you first paid your employees.
You must choose a pension scheme that meets the minimum standards set by the Pensions Regulator. We are experts at choosing the best scheme to suit your requirements, so can help you ensure the most appropriate scheme is chosen.
Legislation dictates that you must write to your employees to inform them about how auto-enrolment applies to them. This has to provide clear information about their rights, including the right to opt-out. Employees have the right to opt-out within a one-month window after being enrolled. You are required to re-enrol eligible employees every three years if they have opted out or left the scheme.
The Pensions Regulator monitors compliance and can impose fines for non-compliance. You must ensure you complete a declaration of compliance to confirm you have met your duties.
The key to staying ahead with auto enrolment is good record keeping, a strong diary system and the support of other professionals who can help you offer the best possible solutions for your workforce.
Understanding and implementing these requirements is crucial to meeting your legal obligations and supporting your employees’ retirement savings.