For businesses with 500 employees or less, auto-enrolment is now very real and there are a number of things you will have to do over the coming months to ensure that you comply with this new legislation – or face being fined by the Regulator.
The auto-enrolment process is highly complex. Firms will need to implement a scheme by a particular date, called their “staging date” which is determined by their payroll size in 2012. To do this, you need to assess which employees will need to be enrolled in the scheme and this is based on employees’ ages, wages and opt in or opt out choices.
Not sure where you might fit? The Pensions Regulator has created this useful calculator to find you’re staging date.
So – what do you need to do?
Once you know your staging date, you will need to start planning – and there is a lot to do!
If you are an Employer, you should ensure you understand the basic information on these changes, your staging date and which Employees will be affected. A review of existing arrangements should also be undertaken sooner rather than later. A review is also important as The Pensions Regulator, who will oversee the implementation process, does carry the power to levy fines of up to £400 or a fixed amount then daily fines of up to £10,000 on employers who do not take action.
If you are an Employee we can also undertake a full and tailored review as to where you sit currently within the proposed workplace pension’s reform regulations.
If you currently don’t have a work place pension scheme in place or need to make sure your current one is compliant with the new guidelines – contact us today.