Avoiding auto enrolment is not an option
Pension auto enrolment for your workforce is compulsory. Starting in 2012 for large corporates and now auto enrolment ‘staging dates’ are commencing for businesses with anything from one employee to 50. Auto enrolment process takes time to reach a decision on the best plan to adopt and get it into place, so if you’ve done nothing yet the chances are you need to act now.
Ignoring auto enrolment is not an option, as The Pensions Regulator is empowered to penalise. If your firm has not yet found out its staging date, early action is essential as the date could be imminent. Many small business owners have little experience of workplace pension schemes, so do not hesitate to contact RWM to seek whatever help and advice you need to implement a fully qualified workplace pension scheme.
You must be prepared for auto-enrolment
Before your firm’s staging date arrives, you must be fully prepared to auto enrol eligible workers aged between 22 and their personal State Pension Age. Some other employees have the right to request inclusion. Next step is to decide what sort of workplace pension scheme would suit you and your workforce – or establish whether any existing scheme your firm may have qualifies for auto enrolment purposes.
Workplace pension providers such as leading insurers offer qualifying schemes that permit flexible investment choices. Comparing their features is a specialised task and a qualified financial adviser from RWM can help. There are basic auto enrolment schemes available, which may suit some firms, though it offers a fairly narrow range of investment choices and can be timely to implement and ultimately less cost effective.
Your scheme must be registered with The Pensions Regulator ahead of implementation. When auto enrolment starts, the minimum total contribution is currently 2% of qualifying earnings, 1% from your firm and 1% stopped from an employee’s pay. Stepped increases will lift contributions to 3% and 4%, respectively, by October 2018.
RWM can guide you and your company through the workplace pension scheme phasing process to help reduce the administrative burden and the possibility of fines from the Pension regulator.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
Auto Enrolment is not regulated by the Financial Conduct Authority
To contact RWM, please complete our Enquiry Form.