Auto-Enrolment – Getting Started

The Pension Regulator (TPR) is currently in the process of issuing letters to all employers with their staging date for auto-enrolment, which will also include details of your requirement to notify them of a nominated contact by a specified date. If you have not already received a letter, then you should receive one in the coming weeks.

This will be the opportunity to notify them, if you do not believe that Auto-Enrolment applies to you. The main reasons why auto-enrolment may not apply to you are as follows:

  • You no longer have any employees.
  • The only employees of the company are directors, who do not have an employment contract or only one director has an employment contract.
  • Your business/company has ceased trading.

On this basis you will be able to email TPR to confirm that you are not an employer for auto-enrolment purposes. There is a template provided by TPR for this purpose and if they are in agreement they will confirm that auto-enrolment does not apply to you.

If this is not the case, then you will need to follow the instructions on the letter and nominate a contact for auto-enrolment purposes. The main contact has to be the business owner or director, but you can specify a secondary contact who will be dealing with the day to day issues of implementing auto-enrolment. This can a member of staff, payroll provide or ourselves, if you require us to help you comply.

The second stage is to review and identify an appropriate pension scheme for the scheme and we recommend that you refer to the finding a provider guidance to help you with this or contact an independent financial advisor.

There are a number of providers, who offer auto-enrolment schemes and there is a list of them on the Association of British Insurers website in addition you may be able to access a scheme via an association you are a member of, such as the Federation of Small Business or there is also the government scheme referred to as NEST, which you can choose.

As part of this process you should undertake a review of your payroll in order to check which employees you will have to enrol and to make an assessment of the cost to you, Essex Abel can help you with this process and to access the various options in relation to the salary elements to be included.

It is recommended that you start this process at least 9 months before your staging date to allow you time to undertake a full review of your options and implement the scheme, particularly as some providers are already indicating that they will reach capacity and stop taking on new or smaller schemes.

This will then allow you to commence the implementation process, which we will cover in our next article or see The Pension Regulator for more information.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Neither Essex Abel Ltd nor the author accept any responsibility whatsoever for any action taken based upon the information included in this articles.