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Workplace pension law is changing. Do you know your company’s responsibilities?

Pension reform duties will be brought into force progressively from October 2012.  Employers will face additional costs and administration burdens under this new regime.  The good news is that many businesses still have time to plan and prepare. 

There are 7 basic steps that employers will have to follow.

1.    Know your staging date – when to act
2.    Assess your workforce
3.    Review your pension arrangements
4.    Communicate the changes to all your workers
5.    Automatically enrol your “eligible jobholders”
6.    Register with the Pensions Regulator and keep records
7.    Contribute to your workers’ pensions


There is no doubt that auto enrolment will have cost implications for every employer and they must consider how they will absorb these costs.  Will they have to increase the cost of their goods or services?  Can they absorb these costs simply by reducing profits? Will staff remuneration structures have to change?   These are only some of the questions that business owners need to address and each will have their own specific issues, but all will need to incorporate auto enrolment into their business plans over the coming years. 

Employers face a major challenge as they begin their pension duties, however planning ahead could help to smooth the burden and avoid any last minute shocks. 

Do you know your staging date?

Your company’s staging date is the date you must be ready to comply with your duties

Employer
(by PAYE scheme size)                                        Staging Date
120,000 or more                                                 01-Oct-12
50,000 - 119,999                                                01-Nov-12
30,000 - 49,999                                                  01-Jan-13
20,000 - 29,999                                                  01-Feb-13
10,000 - 19,999                                                  01-Mar-13
6,000 - 9,999                                                      01-Apr-13
4,100 - 5,999                                                      01-May-13
4,000 - 4,099                                                      01-Jun-13
3,000 - 3,999                                                      01-Jul-13
2,000 - 2,999                                                      01-Aug-13
1,250 - 1,999                                                      01-Sep-13
800 - 1,249                                                         01-Oct-13
500 - 799                                                            01-Nov-13
350 - 499                                                            01-Jan-14
250 - 349                                                            01-Feb-14

Employer (by PAYE scheme size)                        Staging Date
50 - 249                                                              01-Apr-14-01-Apr-15
Test tranche less than 30 members                    01-Jun-15-30-Jun-15
30 - 49                                                                01-Aug-15-01-Oct-15
Less than 30                                                       01-Jan-16-01-Apr-17
Employers without PAYE schemes                       01-Apr-17
New employers Apr 2012- Mar 2013                   01-May-17
New employers Apr 2013- Mar 2014                   01-Jul-17
New employers Apr 2014-Mar 2015                    01-Aug-17
New employers Apr 2015-Dec 2015                    01-Oct-17
New employers Jan 2016-Sep 2016                    01-Nov-17
New employers Oct 2016- Jun 2017                   01-Jan-18
New employers Jul 2017-Sep 2017                    01-Feb-18
New employers Oct 2017                                   Immediate duty
      
Businesses need to establish their staging date and work backwards to create a plan for the different stages of the auto enrolment process.  Many institutions and advisers are recommending that this process should start at least 18 months before your staging date. 

IFS Corporate Solutions specialises in flexible benefits schemes and houses a platform Jargon Free Benefits, which helps businesses comply with new pension legislation.  Jargon free Benefits is a way of managing auto enrolment and delivering cutting edge employee reward packages.  Traditionally this type of system has only been taken up by large companies but Jargon Free Benefits can be installed and run at a fraction of the traditional cost. 

Our team of corporate advisers provide each client with an individual service that is tailored to their personal and business goals.  We also offer a business review service to help grow and improve businesses whilst accommodating their auto enrolment duties.

If you would like more information on auto enrolment please go to www.ifscorporatesolutions.co.uk

If you would like to discuss your company’s responsibilities or arrange a business review with one of our corporate advisers please call our team on 01302 721633.  Alternatively you can email any questions to enquiries@ifscorporatesolutions.co.uk 

We are currently running a series of seminars on auto enrolment in Doncaster, Wakefield, Leeds, Rotherham and Beverley.  If you would like further details or to book a place, please visit our website www.ifscorporatesolutions.co.uk and click on seminars. 

IFS Corporate Solutions Ltd
9 Malton Way
Ebor Court
Adwick-Le-Street
Doncaster
DN6 7FE

T:01302 721633      E:enquires@ifscorporatesolutions.co.uk      W:www.ifscorporatesolutions.co.uk