The Pensions Regulator (TPR) is a great resource for small businesses looking for advice on what actions they should take to meet the auto-enrolment duties required by law in the administration of workplace pensions. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it.
Are you thinking of using your existing pension scheme for automatic enrolment?
If you already have a pension scheme and are thinking about using it for automatic enrolment, you'll need to check with your scheme provider if it is a 'qualifying scheme for automatic enrolment'. If you can’t use it, you’ll need to choose a new scheme to meet your automatic enrolment duties.
The Pensions Regulator has guidance to help you to choose a pension scheme.
Have you decided which pension scheme to use?
If you have staff who must be put into a pension scheme, then you’ll need to have a pension scheme in place that is set up for automatic enrolment. You’ll need to find a scheme yourself or get help from your accountant or a financial adviser.
The Pensions Regulator has guidance and support available to help you to choose the scheme that is right for your staff.
What costs can I expect to incur in setting up a pension scheme for automatic enrolment?
There are some pension schemes aimed at small employers that do not have set up or monthly charges for automatic enrolment, while other schemes may charge. It is important that you weigh up the costs and charges for both you and your staff against the level of services that the scheme will provide – some of the services may make running automatic enrolment easier for you over the long term.
The Pensions Regulator has guidance to help you understand the costs involved.
Can payroll software help with automatic enrolment? Many payroll providers already provide a module or an add-on for automatic enrolment that will help you to work out who to put into a pension scheme, which earnings to assess, and how much you and each member of staff needs to pay into the scheme. Payroll software can help with your ongoing duties such as monitoring age/earnings of existing staff, and enrolling/writing to them as needed, as well as assessing new starters and processing leavers.
Find out how your payroll software can help you with automatic enrolment.