In order to be fully compliant with the auto-enrolment legislation, all eligible employees must be enrolled in a pension scheme by no later than the compulsory staging date. The date is set by the Pensions Regulator based on employer size.
In order to be properly prepared, it is recommended that you start planning for automatic enrolment 12-18 months in advance. Find your staging date using the tables found here or contact us for more information.
Pension Scheme Options
One of the main decisions you take on auto-enrolment will be what type of scheme you opt for. This can be broken down into the 3 following types, each with their own advantages and disadvantages.
Existing pension arrangements
Many companies already have pension arrangements in place and some of these will be capable of being used to comply with the new regulations. However, the majority of schemes will require changes to,contributions, waiting periods before joining members, informational material and default investment fund
A lot of schemes may also be many years old and are possibly outdated in how they are administered or have fees that are no longer competitive.
NEST has been created as the low cost pension scheme that all employers can choose to meet their new duties, with the intended audience being the 7 million people in the UK who currently have no pension provisions. More infomation is available at www.nestpensions.org.uk
New Pension Scheme
Following a detailed assessment of the business requirements, an employer which does not have an existing company pension scheme already may find that setting up their own arrangement is a suitable solution, rather than NEST. Our consultants can assess and advise on the most suitable solution for a company’s specific needs.