How to Succeed in Pension Auto Enrolment
Pensions Act was amended and thus needs that every company under auto-enrolment should present a workplace pension scheme to their workforce. This changed how pensions were being offered with employers deciding conditions under which to offer pensions. It is thus the right of employees to be provided with pension schemes with an option to continue with or leave the scheme. As an employer, there are duties you should perform with pension automatic enrolment and failing make you pay penalties. Below are guidelines to succeed in pension auto-enrolment.
Make sure there is an effective communication with your staffs. Ensuring there is a clear communication with your employees and every relevant department is crucial as it will save time and resources that would be used in addressing unnecessary questions down the line. Communication should elaborate any new company policy as well as processes put in place and deductions to be made on staff’s salary. It is thus important to have tools and templates to enable you to pass important information to your employees.
You should review prevailing pension provisions. It is possible that your company has already provided pension schemes to its employees and this makes it necessary to keep checking your up-to-date pension policy. First of all, it is good to be informed on how pension auto-enrolment legislation will affect the workforce already registered with another scheme. Look into whether you have the minimum requirements. In addition, consider if your present pension provider has a good scheme for workers becoming eligible under the present rules.
You should clearly note your company’s staging date. In case you do not have clear details of your company’s staging date, find out to avoid penalties. Staging date refers to when the employer is required to begin auto-enrolling their workforce into a complying pension scheme. It is necessary to know of there being chances of bringing your staging date forward. Also, you can defer auto-enrolment a bit but there are steps you should take and this makes it essential to know the responsibilities you have.
Ensure you select an appropriate pension scheme. Although there is a variety of pension schemes in the industry, some of them are not qualified. You thus need to thoroughly examine them to make sure they meet the needed criteria. It is also good to consider the amount you will be needed to pay in getting your scheme administered. Also, check the investment choices they provide your staffs with; if your company prioritizes ethical values, choose a provider investing in such schemes. Moreover, consider what support is given to employees and employers; having a point of contact is important when an issue arises.