‘My employees are in a pension scheme. I don’t need to do anything’
FALSE. Existing arrangements must fit certain criteria to be considered a qualifying scheme, so a review is needed and contracts of employment may need to be changed. Everyone will need to be considered from their 1st day of employment.
I can deal with this nearer the time
TAKE CARE. Based on our experience at Panoramic, the average lead time to set up an auto enrolment scheme is 1 year. Preparation is key to a successful and straightforward solution, and it will require Employer/Payroll and HR involvement to ensure systems and workforce communications are in place.
My payroll people can manage what I need
THEY MAY, BUT…Workplace Pensions are not simply about payroll. HR and finance will need to be in the decision making process, and clear concise communications to employees needed. Payroll providers and bureau’s promise much but we have found there are invariably holes in their experience and systems despite their ‘we do everything’ approach.
Nest will advise me and help set up what I need
SIMPLY NOT TRUE. NEST is a pension provider and whilst it can offer guidance much of this is online, including 150+ pages of ‘how to’.
Fines won’t be imposed
NOT TRUE. To 30.6.2015, 1,751 penalty notices were issued including 332 fixed penalty notices of £400. Source: TPR quarterly compliance and enforcement bulletin.
I don’t need advice – the information is out there and I can do it myself
YOU CAN BUT… The information about how to set up your own auto enrolment scheme is public domain, in which case failure to comply will attract penalties. But ensuring ALL aspects of the legislation are covered within the required timescales is time consuming – particularly if your company expertise is not pensions.
Everyone will opt-out
THE EVIDENCE SUGGESTS NOT. The average rate of opt-out is thought to be only 9%, considerably lower than the original estimates. With pension freedoms at retirement, low earners may see workplace pensions as favourable particularly when employer contributions are added.
To learn more about how Panoramic Wealth Management can help you complete your Auto Enrolment journey contact us now on 01892 559 555