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Thank-you for attending our Auto-Enrolment Roadshow brought to you by Hillyer McKeown Solicitors and McLintocks Accountants. We've uploaded the slides from the event for you to read and download.
Transcript of Auto-enrolment event
- 1. Auto-Enrolment What You Need to Know St. Davids Hotel Thursday 27th March 8:00am - 10:00am
- 2. About Us Rachel HughesPaul McGerty Richard Landsberg Alison Hale Justine Watkinson
- 3. The Employer Duties Alison Hale Adviser at McLintocks Wealth Management Offering independent financial advice, specialising in the provision of pension and wealth management services for Individuals, Companies and Trusts
- 4. The Employer Duties A quick guide to automatic enrolment and the employer duties
- 5. The Employer Duties From October 2012 every UK employer must: register with The Pensions Regulator (TPR) & provide details of workforce and pension scheme automatically enrol certain workers arrange membership of a pension scheme for other workers
- 6. The Employer Duties The employer duties will be introduced in stages from October 2012 The staging date is the date that your employer duties first apply Its based on the number of people in your largest Pay As You Earn (PAYE) scheme
- 7. The Employer Duties Youll have separate duties for three different types of worker: Eligible jobholders Non-eligible jobholders Entitled workers
- 8. The Employer Duties The different categories of worker are determined by their age and how much they earn: N.B. These figures are for the 2013/14 tax year
- 9. Employer Duties: Eligible Jobholders You must: Provide certain information to the pension scheme and eligible jobholder Automatically enrol them into an automatic enrolment scheme Deduct any jobholder contributions from salary and make contributions on their behalf Process any opt-out notices and refund contributions paid
- 10. Employer Duties: Eligible Jobholders You must also: Roughly every three years re-enrol those who have previously opted out, stopped making contributions or ceased membership more than 12 months before each re-enrolment date Keep records of the automatic enrolment and opting out processes and provide to TPR if requested Provide certain information to the eligible jobholder within two months if theyre already in a qualifying pension scheme
- 11. Employer duties: non-eligible jobholders You must: Provide certain information to the non-eligible jobholder including their right to opt in to an automatic enrolment scheme Arrange pension scheme membership Deduct any jobholder contributions from salary and make contributions on their behalf Process any opt-out notices and refund contributions paid
- 12. Employer duties: non-eligible jobholders You must: Re-assess worker type roughly every three years and re-enrol those who have previously opted out, stopped making contributions or ceased membership more than 12 months before each re-enrolment date Continue to assess the non-eligible jobholder in case they change category depending on age and earnings
- 13. Employer duties: non-eligible jobholders You must also: Keep records of the enrolment, opting in and opting out processes and provide to TPR if requested Provide certain information to the non- eligible jobholder within two months if theyre already in a qualifying pension scheme
- 14. Employer duties entitled workers You must: Provide certain information about their right to join a pension scheme Arrange pension scheme membership (the scheme doesnt have to be an automatic enrolment scheme) Deduct contributions from their salary and pay these into the scheme (you are not required to make contributions although you can choose to do so)
- 15. Employer duties entitled workers You must also: Continue to assess the entitled worker in case they change category depending on age and earnings Keep records of the joining process and provide to TPR if requested If the entitled worked is already in a pension scheme run by you, you dont have to provide them with any information.
- 16. Automatic Enrolment Schemes These must meet 3 sets of criteria: Automatic enrolment criteria Qualifying criteria Quality requirements
- 17. Qualifying Earnings The minimum contribution level to meet the contribution quality requirement is based on qualifying earnings Qualifying earnings are a band of earnings of more than 5,668 and 41,450 or less2 2 These are the figures for 2013/14 and are expected to change each year.
- 18. Qualifying Earnings The minimum contribution level can be phased in over six years: Contribution rates required to meet the contribution quality requirement as a percentage of qualifying earnings 3 October 2012 to September 2017 October 2017 to September 2018 October 2018 onwards 2% 5% 8% Employer must contribute at least 2% 3% Date 1% 3 Agreement must be in place for jobholder to make up at least any difference between the total and the employer amount. Total must be at least
- 19. Certification You can certify that your scheme meets the quality requirement The certificate can cover all workers or groups of workers in your scheme The minimum contribution levels for certification can be phased in over six years from October 2012
- 20. Pensions Regulator The Pensions Regulator will: Tell employers when their staging date is Provide guidance and information about the employer duties Have the power to impose penalties on employers, including a fixed penalty notice of 400 & escalating penalties if you fail to comply
- 21. Inducement 4 The rules about inducement apply to all employers from 1 July 2012.
- 22. Options For Employers to be Compliant NEST Employer sponsored Auto-Enrolment Scheme Payroll
- 23. NEST Trust based Defined Contribution scheme Maximum contribution 4,500 (2013/2014) Limited investment choice No transfers in or out No trustee discretion on death 0.3% amc plus 1.8% contribution charge Sources: Personal Accounts Delivery Authority, Frequently asked questions about NEST, http://www.padeliveryauthority.org.u k/nest-faqs.asp DWP/PADA, Pensions - Consultation on draft scheme order and rules 28 April 2009. Money Marketing, IHT risk makes personal accounts less attractive, 3 November 2009.
- 24. Information All of the information is based on our current understanding of the relevant legislation and regulations (including drafts) and may be subject to change. McLintocks Wealth Management Limited is an appointed representative of Premier Pensions and Tax Consultancy Beech Court Business Center, Moss Brow, Lymm, Cheshire WA13 9TL is authorised and regulated by the Financial Services Authority. Under FCA Register number is 482631. Our permitted business is advising on and arranging investments. You can check this on the FCAs Register