Auto Enrolment – Be Ready for Pensions Reform

By Marsh

Posted 04/04/16

In this short article we would like to introduce you to Jelf, a sister company to Marsh, where Jelf discusses Auto Enrolment – how it affects you and how it could help make the process easier for you.

 Jelf Employee Benefits

The Pensions Act 2008 changes the law on workplace pensions. Complying with the new rules will require some of the biggest changes your business will have to deal with for some time.

Whether you run a sports club, construction firm, butcher, baker, beauty salon, pub, or hotel – then you will almost certainly have new duties under the updated rules. In essence, you must enrol certain members of staff in a pension scheme and pay into it on their behalf – this is called "Automatic Enrolment".

What's more, failure to do so, or to do so incorrectly could incur heavy penalties – from flat £400 fines to fines anywhere from £50 a day up to £10,000 a day (depending on the number of employees), and even imprisonment for up to two years – so it is very much worth making sure you are ready.

This means:

  • Finding out the date by which you must have everything in place – this is called the "staging date".
  • Working out which of your employees qualify for Auto Enrolment.
  • Selecting a qualifying pension scheme that is appropriate to your business – either converting an existing pension or starting a brand new one.
  • Working out how much you and your employees will need to pay into the scheme - that means calculating a "pensionable salary" for every eligible employee.
  • Making sure your eligible employees understand the scheme, including their right to opt out – and that those not directly eligible are informed of their options.
  • Informing the regulator of the steps you are taking to meet your Auto Enrolment responsibilities – within five calendar months after your staging date.

Clearly, complying with the new rules is essential – but a potentially complicated and time-consuming task which may distract you from the everyday running of your business – and time is running out.

Want Help or Find out More?

Jelf – a sister company to Marsh and an employee benefits specialist – has developed dedicated services to help small and medium sized businesses through the entire process. Jelf AEase and AEase Lite consultancy services are designed to manage all aspects of Auto Enrolment implementation and ongoing administration, so you can focus on running your core business.

Call Jelf on 03303 111 578

Posted 04/04/16

Author: Marsh

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