How to Succeed in Pension Auto Enrolment
Changes were made on the Pensions Act needing all companies under auto-enrolment to present their staffs with a workplace pension scheme. This brought changes in pension provision where employees would set rules of providing schemes. Employees are thus entitled to be provided with a pension scheme and can decide to remain 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 tips for successful pension auto-enrolment.
Ensure there is a communication with your staffs. Maintaining a clear communication with your employees as well as all the relevant departments is very critical since it helps in saving time and resources you would otherwise use in answering unnecessary questions in the later days. Communications should let the staffs know of processes put in place, any new company policy and deductions to be made from their salaries. 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. There are chances that employees of your company are already provided with pension schemes hence the need to keep checking the prevailing pension policy. First, it is important to know how pension auto-enrolment legislation is going to affect staffs already enrolled in other schemes. Check whether you meet the minimum requirements. Also check whether your current pension provider provides a good scheme for staffs becoming eligible under the current rules.
Ensure your company’s staging date is clear. If you have not taken note of your company’s staging date, make sure you know it to avoid penalties. The staging date is when the employer is obligated to start auto-enrolling his/her staffs into a suitable pension scheme. It is good to know that you can bring your staging date forward. In addition, you can slightly defer auto-enrolment but under certain conditions and this makes it necessary to know what your responsibilities are.
Choose the right 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. You may also need to know the amount the charge in administering your scheme. Also, check the investment choices they provide your staffs with; if your company prioritizes ethical values, choose a provider investing in such schemes. Additionally, inquire about the support you and your staffs are presented with to ensure there is a point of contact so that any arising issues can be addressed easily.