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Retirement Solutions
Automatic Enrolment
Hoskin Financial Planning
Summary
• Auto Enrolment is designed to get more people saving for the future
• Employers must have some sort of pension provision for all employees
• Employers need to identify their staging date – this determines when their employer’s duties will apply
• Employers will have to set-up and contribute to a pension scheme suitable for automatic enrolment
• Employers must assess their workforce to determine which duties they need to carry out
• Employers will have different duties depending on the types of worker they employ
• Employers will need to keep records of how they’ve met and continue to meet their duties
• The Pensions Regulator (TPR) will ensure employers comply with the new duties and impose penalties on those who don’t
Or else...
Compliance/unpaid contribution noticeWarning
Fixed penalty - £400‘Wake up call’
Escalating penalty
Workers Penalty per day1-4 £505-49 £50050-249£2,500250-499£5,000500+£10,000
Persistent offenders
What happens if you get it wrong?
Third parties
£400 fixed£200 per day
escalating
Prohibited recruitment conduct
Workers Fixed penalty1-4 £1,0005-49 £1,50050-249 £2,500250+ £5,000
Doing nothing is not an option...
“A person guilty of an offence under this section is liable -
a) on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or both;
b) on summary conviction to a fine not exceeding the statutory maximum.”
The Pensions Act 2008, Section 45(2)
“…there is a risk if we allowed employers to say “we left it too late and it was difficult”, it would set a
precedent. We cannot have that kind of excuse,”...
TPR spokesmanNew Model Adviser 21/09/2012
Source: New Model Adviser “TPR shows no mercy as firms struggle with auto enrolment” 21 September 2012.
Hot topics (the importance of professional connections)
Who is a worker?
Contractual enrolment
Salary exchange
Payroll
Car allowances
NEST changes...etc...
Employers required to register by staging date50 or more people in PAYE scheme
(lower estimate)
Source: The Pensions Regulator, “Automatic enrolment: Staging profile and forecast volumes”, September 2012
2,000-2,999
160-89
Employers required to register by staging date49 or less people in PAYE scheme
(lower estimate)
Source: The Pensions Regulator, “Automatic enrolment: Staging profile and forecast volumes”, September 2012
<30140,000
Employer help?
Source: www.professionalpensions.com, “NEST warns small employers will not be ‘hand held’”, 30 October 2012
"Our research shows that…employers with as few as one hundred staff - are expecting help from NEST and other providers…the fact is we won't be able to and neither will any other
provider.“
Roy Porter, NEST assistant director, distribution
Getting advice
Source: DWP Research Report No 546 ,‘Employers’ attitudes and likely reactions to the workplace pension reforms 2007”
Auto-enrolment is happening!!
You need to act now
Speak to your Financial Adviser
Any Questions?