With corporate governance and with less than a year to go before auto enrolment goes live, some of the UK’s largest companies are busy planning how they will cope with the new laws and the duties imposed on them.
Even with their big HR departments, sophisticated payroll systems and big budgets, they have to plan well ahead for this massive change to pension legislation.
So, what about us, the smaller companies? Do we need to plan ahead?
For many employers who have not yet taken the time to study the detail of auto enrolment, you may feel it’s just about having a workplace pension and making contributions for some employees and that’s it.
Well to a small degree you’d be right. However, let’s say that your pension scheme is the Rolls Royce of pensions with all the bells and whistles but the guy behind the wheel steering it is someone who has never driven before and doesn’t know where he should be driving to! You can imagine the mess, not to mention the cost.
What you will need is a professional chauffeur who knows exactly what to do, how to drive smoothly, where to stop and how to avoid all the fines on the way. You need to ensure the car is well serviced and the chauffeur is trained and fully aware of all the legalities of his role.
Auto enrolment is as much about the regulatory administration, knowing the different classes of employees and which are eligible, non-eligible and entitled, the employer duties, what makes a pension scheme “Qualifying” and having the necessary systems and processes in place to ensure 100% compliance with The Pension Regulator.
For the smaller businesses, planning for auto enrolment is just as big a task as it is for the major companies, in some cases more so. We advise that you find out when your Staging Date will be (available from our website) and then put an 18 month action plan together to include the following:
- Analyse your employees and identify which fall into what category, eligible, non-eligible and entitled.
- Understand the Employer Duties and the Regulatory requirements.
- Examine your existing pension scheme to ensure it meets auto enrolment requirements, what to do if it does not or if you do not have a scheme in place currently; what options are available to you.
- Review your current systems and processes and consider what you need to update or introduce to manage the compliance, payroll and pension management.
- Consider the cost implications to your business with the administrative duties, system updates/implementation and pension contributions.
Leaving it all too late may mean you’ll need a getaway driver rather than your chauffeur. At Auto Enrolment Solutions we have the expertise to drive your business through the auto enrolment twists and turns, safely and professionally, whilst you run your business from the back seat.
Call us now on 01202 880074
