Auto-enrolment

Auto enrolment, staging date, eligible worker and work place pension are all terms that you may have heard recently through the media, but what do they really mean and is your business ready for the changes? Over the coming months Tamar HR will be providing you with more helpful tips to assist you in the auto-enrolment process.

 

Auto-enrolment is very much alive and kicking, with over 1 million people having been already enrolled into a workplace pension since the roll out began in October 2012. For many small and medium sized employers the approach has been to put it to the bottom of the pile and worry about it when your time comes. This can be a risky strategy as there is a lot of preparation work required to identify a suitable pension scheme that meets the Government’s requirements for auto enrolment.  This preparation work takes some time so Tamar HR would advise all employers with 250 employees or less who have not yet made any provision for these changes to act now to ensure they meet their staging date in good time.  All businesses will have to comply between April 2014 and May 2017.

 

Often we find that the hardest part of any process is knowing where to start. Thankfully Tamar HR can point you in the right direction and it all begins with identifying your staging date.

 

Staging Date

 

Each company will have a unique staging date that will be determined by the number of employees you have on your payroll. The best way to think of your staging date is the date at which the law will apply to you and you will need to ensure that you are prepared by the time your date arrives.

 

Finding your staging date couldn’t be easier, simply visit the Pension Regulator website at www.thepensionregulator.gov.uk and click on the ‘Find out your staging date’ section. You will be presented with a box like the one pictured below and all you need to do is enter your PAYE reference to be provided with your specific date.

 

 

Once you know your staging date you can begin to think about your preparations for auto-enrolment and how to comply with your duties as an employer.

 

A common question asked by employers is can I change my Staging Date? The simple answer is yes; however you can only bring your date forward and in most circumstances you are unable to delay the date in which you need to comply. Should you wish to bring your date forward, you will need to contact the Pensions Regulator to inform them of your intentions. Any new date will need to be at least one month before your original date.

 

Tamar HR’s view

 

Act early. As soon as you know your staging date we recommend that you start to develop your plan. The whole auto-enrolment process will take 12 – 18 months to complete effectively, so give yourself plenty of time to prepare as there are several areas to consider. It’s also worth mentioning that auto-enrolment is not optional for employers and there is a legal requirement to comply, so don’t get caught out by leaving it too late. There is plenty of help available out there and we would be happy to point you in the right direction.

 

Next month we will be focusing on employer duties in relation to auto-enrolment. If you would like to discuss auto-enrolment for your business in more detail before this, please don’t hesitate to contact us here at Tamar HR, where we would be happy to provide you with support.