PENSION AUTO ENROLMENT

Transcription

1 PENSION AUTO ENROLMENT

2 1 Introduction

3 2 French Duncan HR Services

4 3 Our Strategic Partners

5 4 Aims of Today

6 5 What we will cover Step 7: On going duties Step 6: Implementation Step 5: Find a pension provider Step 4: Know what it will cost you Step 3: Understand who it applies to Step 2: Understand why it was introduced Step 1: Know your staging date

7 Step 1: Know your staging date

8 6 New Workplace Pension Campaign

9 7 Know your staging date Employer payroll size Staging date 250 or more Between 1 October 2012 and 1 February to 249 Between 1 April 2014 and 1 April to 49 Between 1 August 2015 to 1 October 2015 Fewer than 30 Between 1 January 2016 and 1 April 2017 (per last two characters of PAYE reference number) New companies established on/after 1 April May 2017 and 1 February 2018 (per date of first PAYE income)

10 7 Staging Forecast

11 Workplace Pensions What s It All About? Steve Torbet Consultant November 2015

12 Workplace Pensions What s It All About, Alfie? Steve Torbet Consultant November 2015

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14 Step 2: Understand why auto enrolment was introduced

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17 When I m 64 *Year of birth Age you will receive Basic State pension Up to or older * Transition is gradual depending on exact birthday Source:

18 Step 3: Understand who auto enrolment applies to

19 My Generation Entitled Workers Non-eligible Jobholders Eligible Jobholders 75 SPA (state pension age) OPT IN No employer Contribution (Entitled Worker) OPT IN Employer contribution (Non- Eligible jobholder) OPT IN Employer contribution (Non-eligible jobholder) AUTO-ENROL (Eligible jobholder) QUALIFYING EARNINGS (QE) OPT IN Employer contribution (Non-eligible jobholder) Earners 5,824 Qualifying Earnings Threshold 10,000 Earning Trigger 42,385 Upper Limit

20 Step 4: Know what it will cost you

21 A Hard Rain s Gonna Fall 1% jobholder 3% jobholder 5% jobholder Phasing 1% employer 2% employer 3% employer Staging Large employers Medium employers Small/micro employers New PAYEs Oct 2012 April 2014 Aug 2015 May 2017 Oct 2017 Oct 2018

22 The Long & Winding Road Know your Staging Date Assess your workforce Review Existing scheme Review Cost Options Select Scheme(s) Choose Communication Strategy Test Payroll/ HR Systems Deliver Communications Start auto- Register the enrolment Scheme

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24 Just Another Manic Monday Should have started planning earlier Employee communication to the workforce is critical Postponement has been used by many employers to align auto enrolment with their payroll cycle People opt-in during the postponement period Data cleansing employee records is critical before staging missing employee information incorrect formats for address and NI numbers Employer data quality testing is vital using real data Illuminating advice

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26 Help! Designing your solution Working out Your costs Ongoing Governance Finding the right provider Delivering Staff Communication

27 You should not view any of the information contained within this presentation as advice. damgoodpensions.com and DAM are the trading styles of Davidson Asset Management Ltd This presentation represents our present understanding of current legislation and HM Revenue & Customs practice which may be subject to change Please remember that current tax benefits depend on individual circumstances and rates of tax relief may be altered or withdrawn without notice. Auto enrolment is not regulated by the Financial Conduct Authority Davidson Asset Management Ltd is authorised and regulated by the Financial Conduct Authority The value of investments may go down as well as up and are not guaranteed.

28 Step 5: Find a pension provider

29 Provided by B&CE

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31 So far, so good Simple proposition Auto-enrolled >1.5m members Over 10,000 employers signed-up Largest private sector master trust in the UK Defaqto 5 Star Rating

32 We are the ideal solution to auto-enrolment 10% 3% 3% Master Trust Membership 10% 33% 41% Nest The People s Pension Bundled DC MT Now The Pensions Trust Other MT Source: Spence Johnson 2014

33 The People s Pension and employers a winning combination The People s Pension A multi-employer trust Strong Trustee Governance Quality Independent Expert Trustees Economies of Scale Not for Profit Employer Lower operating cost lower AMC for employees Greater flexibility Better Communication No Trustee operational costs

34 Investments: 3 risk profiles Cautious Balanced Adventurous

35 Investments: Self-select options Self-select from 7 funds including Shariah Ethical Fixed Interest (Pre-Retirement Fund) Cash

36 Help engaging employees Pre staging On Line animation Pre-AE booklet Employee presentation FAQs Online information hub Posters Staging Notification letters Opt out forms Online support Payslip flyers Welcome pack Post staging Re-enrolment Annual statements Online support Group transfer exercises At every stage 12 MONTHS Before During After

37 Support for employees as they save Access to: My details Valuations Fund choices Calculators Tools

38 Our charges True portability No entry OR exit charge One off Set up Charge 500+VAT direct 300+VAT introduced All inclusive No other charges apply 0 Transfer fee in or out

39 Our charges One off Set up Charge 500+VAT direct 300+VAT introduced

40 Looking forward Choice of set up Simply Comply: where a simple scheme fits the small business s needs Simply Tailor: where the small business has more complex pension requirements 2 Routes Larger employers who transfer their business from another provider do not use the online solution and are supported by our Business Development Team with a highly personalised service.

41 Stage 1 set up Employer s section

42 Thank you Any questions? twitter/peoplespension

43 Step 6: Implementation

44 44 Implementation Test payroll and pension integration Communications strategy and delivery Auto enrol eligible staff Handle opt outs and opt ins Declaration of Compliance within 5 months of your staging date

45 Step 7: On going Duties

46 46 On going Duties Contribute and Deduct On going Assessment Re-enrol & Re-declare

47 47 Recap Step 7: On going duties Step 6: Implementation Step 5: Find a pension provider Step 4: Know what it will cost you Step 3: Understand who it applies to Step 2: Understand why it was introduced Step 1: Know your staging date

48 48 Questions

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