With the recent storms now easing, our attentions should now be directed to the next storm, the pension provider ‘capacity’ storm.
Many of the organisations that have already passed through their auto enrolment staging date have stated that in hindsight, they should have started their planning earlier. These companies typically thought that auto enrolment was just a case of putting a compliant pension scheme in place and making contributions for staff who do not ‘opt out’. How wrong they have been……
As we receive feedback from those Employers who have completed their auto enrolment, we have shared below some of the many lessons that are being learned:
Systems and Processes
Finding out what your payroll provider will and won’t do in terms of assessment and communication is one of the main areas that we urge employers to review, as soon as possible. If you work with a payroll provider that are happy to carry out your assessment responsibilities and handle the staff communications, then this will take an enormous amount of pressure away from your HR and payroll teams.
Your Pension Provider
Don’t just assume that your existing pension provider will be willing to support you through auto enrolment. Increasingly, we are seeing providers being selective over whether they are willing to accommodate the auto enrolment of non pension members in to their scheme and if they do, this may be on different terms to those you currently receive. It is imperative that you engage with them as early in the process as possible to secure commitment they value your business and want to retain you as a customer beyond your auto enrolment staging date. Most businesses in the UK are approaching their staging dates next year and there is a fear that providers will struggle to cope.
People by their nature don’t like change and the communication with your staff in the months leading up to your staging date is crucial. The methods of communication will need to reflect the needs of your workforce and adopting the right combination of strategies is key. This could include Presentations, E-mail campaigns, Webinar’s, Leaflets and Posters.
Wingate Benefits Solutions have extensive knowledge of the Workplace Pension maze and have designed a comprehensive Workplace Pension Reforms implementation service. We are here to assist you in planning and implementing the new reforms and structuring your pension benefit to meet the Pension Regulators guidelines.
Should you wish to discuss the above in more detail or any other aspect of your current or soon to be established pension scheme please, do not hesitate to contact your usual Wingate Benefit Solutions adviser or call us on 0844 406 0027.
Tax and legislation are liable to change. This information is based on WBS’s current understanding of UK law and HM Revenue & Customs practice and legislation we believe may apply in the future. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of the information contained herewith. It is recommended that professional advice is sought prior to entering into any financial arrangement.