The law for workplace pensions has changed and since 1st April 2012 had been rolled out gradually to existing employers before the 30th September 2017. Since the 1st October 2017, new employers have an immediate duty from their first employee’s start date to comply, known as the ‘Duty Date’.
This means that any employer with one or more staff has duties to comply with that starts on their given staging date or duty date. Including automatically enrolling those who are ‘eligible’ into a workplace pension scheme and contributing towards it.
It is called ‘automatic enrolment‘ because it is automatic for staff – they don’t have to do anything to be enrolled into a pension scheme, but it is not automatic for employers!
For existing employers
If you are looking for a complete payroll and pension management solution, we certainly can help. We will work with most major pension providers and as part or full management undertake the following tasks: –
- Jobholder assessments
- Data transfers & communications from pension provider*
- Opt-out refunds
- Opt-in requests
- Contribution calculations
- Jobholder postponement
- Jobholder communications
- Member data transfers to pension provider*
- Contributions data transfers to pension provider*
- 3 yearly re-enrolment processes
- The Pension Regulators (TPR) – Declaration of Compliance
- TPR – Communications
* Pre-approved list of Pension Providers we administer for full management: NEST Pensions, The Peoples Pension, AVIVA, Legal & General, Smart Pensions, NOW: Pensions, Royal London and Scottish Widows. If your pension provider is not on the pre-approved list it doesn’t mean we cannot assist, please call us to find out if your pension provider is known to us and what areas of the scheme administration we can support.
We understand that choosing a pension scheme, setting it up and running the pension scheme can be a daunting prospect. Certain ongoing duties should be done in conjunction with payroll, which is why it makes perfect sense for payroll departments or outsourced payroll providers to manage the pension processes alongside payroll.
If you are a new employer or looking to hire your first staff member, it is best to be prepared as your duties will apply from your employee’s start date. At Biznus Payroll although we cannot provide regulated financial advice on a pension scheme and in-depth due diligence on scheme suitability and durability. We can help employers set up a qualifying scheme with 4 main workplace pension services providers directly including NEST, The Peoples Pension, Smart Pensions, and NOW Pensions, but it will be your responsibility as the employer to research and undertake due diligence to which of these schemes are best suited for your business.
Even if your employee does not meet the automatic enrolment criteria you will still have duties to complete and provide access to a qualifying pension scheme should they choose to opt in. Also, that should your ‘eligible’ employee express a wish before being automatically enrolled into a qualifying pension that they do not want to be a member of the pension scheme, they MUST become an ‘active member’ (i.e. enrolled and issued a membership number by the pension provider) first BEFORE they can choose to opt-out.
If you want a little more support and hand holding in selecting suitable workplace pension services then we have contacts with 3rd party regulated independent financial advisors specialising in workplace pension services, most will provide a telephone consultation, due-diligence report with a selection of suitable pension schemes specific to your criteria from a comprehensive list of qualifying pension schemes on the market, just ask us for details or take a look at our Partners page for Financial Advisers.
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