Many Employers are still underestimating the
challenge that Auto-Enrolment presents ...
Starting from October 2012, new
regulations will require every Employer, regardless of size, not only to
automatically enrol the vast majority of their workforce into pension schemes,
but also to make contributions on their behalf. Many Employers will expect their payroll provider to offer the solution but they are only part of the answer. Employers will need an all-encompassing application that: analyses the financial impact of Auto-Enrolment; helps them with scheme selection in conjunction with their Advisers; provides the administrative functionality to monitor scheme members and guarantees compliance with the new regulations.Employers will need to:
- Automatically enrol certain employees into a pension scheme.
- Make contributions on their employees’ behalf.
- Register with The Pensions Regulator.
- Provide employees with certain information about the changes and how they will affect them.
Employers and their Advisers must consider the following:
| Financial Impact | Employers need to understand the financial impact of the regulations and how that can be affected by decisions they may make. How can they see the impact of the choices they make? |
| Scheme Selection | Employers must elect or select a scheme that will meet certain criteria. So which scheme do they use? An existing scheme, new scheme or perhaps NEST? If an existing scheme is chosen, how can they ensure it is compliant or how do they make it compliant? If they need a new scheme, how do they decide which Pension Provider to use and how do they integrate with their existing administration processes? |
| Administration | It's not simply a question of recording eligible jobholders, it's also about monitoring non-pension scheme members and recording whether they have become eligible, whether by age or salary. This changes every time an Employer runs a monthly or weekly payroll or HR updates are made. How can Employers ensure that noone slips through the net and exposes them to regulatory penalties? |
| Compliance | How can Employers be certain that they have a set of processes in place that guarantees that they are compliant? They will need to ensure that what they have in place is watertight and robust, otherwise they may be faced with substantial penalties and it is clear that the Regulator will not accept ignorance as an excuse. How can Employers ensure that they are compliant at every step of the process? |
To arrange a demonstration of our answer to the Auto-Enrolment challenge please click here or contact us at autoenrol@staffcare.net.
This is serious ... Don't think that NEST is the answer ... It isn't.
What can Staffcare do to help?
Building on our expertise and
award winning software developed over the last seven years, the flexibility of
the Staffcare Auto-Enrolment module ensures that our software can be used by Advisors,
Consultants or Employers direct. With an intuitive and user
friendly interface Employers can be sure that they adhere to their obligations in the most efficient and risk
free manner. Our software and services will:
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Let Employers gauge the financial impact of the new legislation.
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Provide assistance in the setting up of a compliant scheme (either existing or new).
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Deal with the Pension Regulator registration processes.
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Provide an Employer portal to offer a link between payroll, HR, The Regulator and Pension Providers.
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Provide a secure Employee site for data changes and initiation of the opt-out process.
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Be brandable to reflect the Employers identity or that of the Advisor/Consultant.
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Ensure compliance and deliver peace of mind.
We are working with The Pensions Regulator to ensure our software application fully meets all aspects of the regulations.
To request a copy of our latest White Paper on Auto-Enrolment please click here.
