Pension Changes – An Introduction to Workplace Pensions

By 2018, around 1.35 million employers will be required to automatically enrol their workers on workplace pension schemes.  The pension changes are being phased in over a number of years and will see pension contributions shared between employees, employers and the government.

The Pensions Regulator has been overseeing monthly staging dates for businesses of different sizes with larger businesses required to begin operating pension schemes in 2012.  By February 2014 all businesses with more than 250 employees had been covered.  However, the vast majority of businesses are yet to be affected.  Micro sized businesses, those with fewer than 50 employees, make up the vast majority and will all be expected to progress onto the system by March 2017.

“What are the pitfalls and how can I avoid them?”

Don’t leave it too late – Compliance involves a lot of work.  Employers face stiff fines and can even be required to make up staff contributions owed for periods of non-compliance.  Most experts recommend a year to get ready.

The Pay Pod has established strategic partnerships with experts in the field of pension provision and HR to guide you seamlessly through these pension changes and the process of auto-enrolment however big or small your workforce is.

Take care over staff communications – Bringing employees with you on the journey to auto-enrolment will smooth the process.  Taking a proactive approach to communication will save you from dealing with a glut of questions when staging begins.  But take care – businesses face penalties if they encourage staff to opt out.  Using a third party to communicate with staff can help avoid this danger.

The Pay Pod already has the systems in place with the software and processes to help you communicate with your staff.  We can produce literature and letters directly to your employees on your behalf at the required time in the required format so that the process is smooth and informative.

Make sure your software works – Check that your IT systems record information in the way required by your pensions provider.  If you have a new provider and new software, make sure your systems communicate effectively.  Data held about your staff must be clean and up to date.

The Pay Pod has state of the art, modern and compliant software already in place by directly partnering with the software company that produces it.  Take the worry and the expense out of ensuring your system is up to the task by letting The Pay Pod operate your payroll for you.

Make sure you get proper advice – You may feel that you can navigate your way through the maze of regulations on your own.  Many conclude that it will be cheaper to just commission outside advice.  If you do, make sure the supplier has sufficient knowledge and experience.

At The Pay Pod we have years of experience processing payroll and have expert partners on hand to help and advise you, so we can cater for any size business.  Click here to view our strategic partners, which include Thomas Carroll and Consilium Consulting.

Don’t make assumptions about your existing provider Many businesses currently run pension schemes for their high earners and Company Directors, but the pension providers they use may not be interested in extending coverage to other staff.

The National Employment Savings Trust (NEST) is the default pension provider and will accept all staff.  However, for many businesses it is likely that NEST would not be the ideal choice.  The Pay Pod can give you alternatives and help you source the best provider for your needs, providing you heed the first heading and don’t leave it too late.

The Pay Pod is ready for auto-enrolment and would be pleased to manage your payroll requirements, easing you smoothly and painlessly into compliance in plenty of time.  Our expert partners can deal with any pitfalls or issues you encounter and will always be on hand to advise.  We already have everything in place to bring your employees into the scheme without causing you headaches.

 

The Pay Pod can manage your payroll and auto-enrolment allowing you to manage your business.

For further information and friendly advice, contact us today.

By | 2016-10-14T11:07:16+00:00 November 13th, 2014|Pension Scheme|0 Comments

About the Author:

Tim Evans
Tim Evans is a Fellow Member of the Association of Accounting Technicians, a practising Accountant and Director of The Pay Pod Limited.