Real Time Information and Pension Auto Enrolment

Presentation by

Colin Jackson

Simon Whitehead

Miriam Cox

Agenda

10:00 – 10:15 Introduction – Colin Jackson

– Welcome

– Background to Safe Computing

– Purpose of the seminar

10:15 – 10:45 Pension Compliance - Simon Whitehead

10:45 – 11:15 Real Time Information – Miriam Cox

– What is Real Time Information

– Changes being introduced

– Change to payroll processes

11:15 – 11:30 Break

11:30 – 12:00 Pension Reform

– What is pension reform

– 7 Steps to Prepare

– Opting out

– Postponement

– Change to processes

– Product demonstration

12:00 – 12:30 Q&A

Jan Feb

Mar

Apr

May

June July

Aug

Sept

Oct

Nov

Dec

Why is this happening?

When is this happening?

What is Changing? - Process

What is changing?

Sending of data by

each pay day Form Types

EAS

FPS

EPS

Removal of P46 and

P45

Starting Declaration

BACS Cross Reference

NI Verification

What is Changing? – Information to Capture

Passport Number

ASPP Partner Details

Hours Worked Category

On Strike

Unpaid Absence Indicator

✖ Periods of Inactivity

What is not changing?

P35 Questions

P60s

P6s

Leaver Statement

Changes to Payroll Processes

• Ensure data for starters is complete and accurate at the point of receipt

• All new employees to submit a starting declaration before processing a payroll

• Quality Standards check run for each period rather than at year end

• Submission of new ‘in year’ forms by pay day

• Adjustments to current period pay after FPS submission is sent will need to be performed in new session or period

What is included in our software?

• National Insurance Verification Request Screen

• Generation of the BACS Hash Code in the BACS file generation

• RTI Process Screen

– Generation of all required files (EAS, EPS, FPS, NVR)

– Additional checks that a period close cannot be perform before forms generated

• New forms added to the PAYE Online Screen

• Totals on FPS Submission shown on HMRC Remittance

• Additional fields required by the HMRC

• Starting Declaration

– New screen in Tempest, EMS, STi, STNet

– Additional Step in the Contract Starter Wizard (Safe EMS)

– Checks to ensure Starting Declaration complete for each new worker

Time for a break….

Pension Reform – Why is this needed?

Departments Involved

7 Steps to Prepare

http://www.thepensionsregulator.gov.uk/employers/7-steps.aspx

Step 1 – Know Your Staging Date

http://www.thepensionsregulator.gov.uk/employers/staging-date-timeline.aspx

Assess Your Workforce

Threshold Earnings £ Age Obligation

p.a./p.w./p.m. 16-21 22-SPA SPA-74

Lower Threshold

<5564 p.a. 107 p.w. 464 p.m.

Entitled Workers

Can join a scheme. No employer contribution

Between 5564.01 – 8105 p.a. 107.01 – 156 p.w. 464.01 – 676 p.m.

Non Eligible Jobholder

Not auto enrolled but have a right to opt in and has an employer contribution

Trigger Threshold

Over 8105 p.a. 156 p.w. 676 p.m.

Non eligible

Eligible Non

eligible

Eligible jobholders auto enrolled and has an employer contribution

Table Tax Year Date – 2012-2013

http://www.thepensionsregulator.gov.uk/docs/pensions-reform-assessing-

workforce-v3.pdf

Step 3 - Review your Pension Arrangements

• Employers will need to provide a suitable pension scheme for the reform program and must meet at least one of the criteria below:

– A total minimum contribution of at 9% of pensionable pay (at least 4% of which must be the employer’s contribution)

– A total minimum contribution of at least 8% of pensionable pay (at least 3% of which must be the employer’s contribution) provided that pensionable pay constitutes at least 85% of earnings

– A total minimum contribution of at least 7% of earnings (at least 3% of which must be the employer’s contribution) provided that all earnings are pensionable

Transitional Period

Duration ER Min Cont

Total Min Cont

1 Employer staging date to 30/09/2017 1% 2%

2 01/10/2017 – 30/09/2018 2% 5%

01/10/2018 Onwards 3% 8%

http://www.thepensionsregulator.gov.uk/employers/phasing.aspx

http://www.thepensionsregulator.gov.uk/docs/pensions-reform-

pension-schemes-v3.pdf

Step 4 – Communicating to your workforce

• Employers have the obligation to provide certain, specified information to workers within prescribed time limits.

Entitled Workers – their right to join a pension scheme Non-eligible jobholder – their right to opt into a scheme Eligible jobholders – their automatic enrolment, information about the scheme

• The information must be provided in writing/email. Does not include merely signposting to a website or displaying a poster

• Certain information can be provided as part of a handbook or joining pack. Generic information only e.g. information abut their right to opt in Where information includes personal or individual data, this will need communicating individually

http://www.thepensionsregulator.gov.uk/docs/pensions-reform-resource-information-

to-workers-v2.pdf

Assess

• Assess Age

• Assess earnings

Enrol

• Attach a scheme

• Deduct contributions

Inform

• Notify within 1 month

• Via email/letter

• Include their rights to opt out/in

• Where to find further information

Step 5 – Automatic Enrolment Procedure

Opting Out

Opting Out

1 month to notify

workers Workers have 1

month to opt out

Employers refund

contributions

Right to opt back in

after 1 year

Reassessed after 3 years

Must not induce to opt out

Postponement

• Purpose

• To avoid enrolment of short-term workers or those with a one-off spike in earnings

• To avoid part-period deductions

• To avoid refund of deductions made in a previous year

• Application

• Postpone for up to 3 months

• 2 types of postponement

– Worker postponement

– Eligible jobholder postponement

• Postponement is assessed on a period basis

• Employer must communicate with workers

http://www.thepensionsregulator.gov.uk/docs/pensions-reform-postponement.pdf

Eligible Job Holder Postponement

• Earned £100

• Worker Postponement

Week 1

• Earned £120

• Non eligible job holder.

Week 5 • Earned £200

• Eligible

• Eligible Job Holder Postponement

Week 6

Eligible Job Holder Postponement

• Earned £100

• Entitled

Week 10

• Earned £220

• Eligible

• Eligible Job Holder Postponement.

Week 11 • Earned £200

• Eligible

• Auto enrolled

Week 15

Things to consider

• Do you know your staging date?

• Ensure that data is accurate and complete

• Name

• Gender

• Date of birth

• Enrolment date

• Address

• NI number (if known)

• Work email address (if one exists)

• Personal email address (if known)

• Ensure that you have a qualifying scheme

– The provision of reports required by the pension provider

• Will you be using postponement?

• The increased administration burden

– Notifications to the workers

– Coping with the opt outs/opt ins

What is included in our software?

• Employer Maintenance

• Pension Scheme Maintenance

• Worker Pension Maintenance Screen

• Main Calculation to assess employee pension eligibility status and auto enrol where necessary

– Automatic Pension Scheme and Deductions

– Automatic postponement

• Tempest Specific

– Apportionment of Employer Pension Costs across timesheets

• Output

– Employer Pension Contribution YTD on payslips

– Regulated Pension Registration Report

– Regulated Pension Enrolment Report

– Postponement History Report

• Further Considerations

– Interfaces to Pension Providers

– Interfaces from Pension Providers

End of Presentation

Thank you for listening