Pensions Act was amended and thus needs that every company under auto-enrolment should present a workplace pension scheme to their workforce. 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. Employers have roles to play in pension automatic enrolment and if they fail, penalties apply. Below are principles to help you 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. Communications should let the staffs know of processes put in place, any new company policy and deductions to be made from their salaries. You, therefore, need to have tools and templates that will ensure you effectively communicate with your staffs.
Make sure you review present 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. Check whether you meet 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. If it is not clear to you, you should find out your company’s staging date 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. 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 should, therefore, pay a keener attention to them to know which ones meet the necessary criteria. It may also be necessary to check how much you will be charged for your scheme to be administered. Moreover, be attentive to the investment choices offered to your staffs; in case your company is keen on ethical values, go for a provider providing such schemes. Furthermore, look into what support is provided to staffs and employees because having a point of contact is of much importance when issues arise.