Auto EnrolmentA few years ago employers simply had to provide access to a “Stakeholder Pension scheme” but with no requirement to pay in any contributions – it was no surprise that this was not very effective.

The UK population enjoys continued improved longevity, but also a decreasing ratio of workers to retirees together with a low savings culture is putting more pressure on State Pension provision.

Since many individuals in the UK are employees it was decided best way to tackle this and encourage individuals to take responsibility for their own retirement savings is to enforce pension contributions directly from payroll via the workplace.

From 2012 onwards every employer in the UK has had their own specific deadline (STAGING DATE) to comply with new regulations and must enrol their workers into a qualifying workplace scheme and pay employer contributions into it (as laid out by Pensions Act 2008).

An employer needs to select an appropriate scheme, issue correct employee communications, assess their whole workforce, automatically enrol the correct type of workers taking correct deductions from payroll, facilitate an “opt out” process, keep accurate records and register this all with the Pensions Regulator whose role is to enforce this requirement.

Payroll providers will often help an employer with ongoing administration of pension payments but few will offer support with scheme selection and installation or on the most appropriate basis on how it should all be set up as well as registering the scheme with Pensions Regulator.
This is what I have been helping many employers with so they can focus on running their business.