04 Feb 2014
Six degrees of separation is the theory that everyone and everything is six or fewer steps away, by way of introduction, from any other person in the world, so that a chain of “a friend of a friend” statements can be made to connect any two people in a maximum of six steps.
In keeping to this theory, Wingate believe organisations must follow six steps to ensure compliance with their auto enrolment responsibilities.
Step 1
Carry out an Initial Assessment of your workforce to understand your staging date and how the government’s workplace pension reforms will affect you and your business.
Step 2
Consider and review all the elements involved in planning and designing your pension scheme. This includes but is not limited to the contribution levels, scheme charges, categories of staff, postponement options, investment options and contracts of employment
Step 3
Seek confirmation the pension scheme you are intending to adopt for auto enrolment meets the minimum requirements and aligns itself with The Pension Regulator and Office of Fair Trading’s (OFT) views on what a good pension scheme looks like.
Step 4
Introduce clear internal processes to support the enrolment of employees in to the pension scheme and a method of monitoring these to ensure they implemented efficiently.
Step 5
Agree and implement a communication plan which uses a variety of methods to deliver key messages to all employees. This should include a summary of the pension reforms, the benefits to them as individuals, the companies responsibilities (and that these have been delivered), what will happen next and what is expected of them.
Step 6
Once you have successfully enrolled your employees in to the pension scheme, you must ensure you have a robust governance structure in place to ensure this continues to remain suitable for your organisation and employees and is delivering The Pension Regulators ‘good member outcomes’
Next Steps….
If you haven’t started preparing for the governments’ workplace pension reforms already, you need to start preparing soon. If you have any questions on how these issues may affect your business or the plans you are making for auto enrolment, then please contact us on 0844 406 0027 or at info@wingatebs.com
Wingate Benefits Solutions have extensive knowledge of the Workplace Pension market and are here to assist you in the planning, implementing and management of company pension schemes.
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.
