Some accountants are predicting Workplace Pensions will have a bigger impact on businesses than the recent recession and many employers will fold because they haven’t got this right.
Who is affected?
Employers who have one or more employees. The Pension Regulator – TPR (the government body responsible for introducing Workplace Pensions) has over 250 pages of guidance for you to read, understand and implement. TPR and the Federation of Small Business are advising all businesses to begin planning their new pension scheme at least 12 months before their start date.
-Design your Workplace Pension.
-Choose one of the 4 main contribution structures for you and your staff.
-Find out which employees you will/will not automatically put into the new scheme.
-Research and decide on the right pension provider.
-Recommend an investment fund for your employees.
-Implement your Workplace Pension.
-Explain the complex changes to your employees, so each one understands how they will be affected, answer their questions and let them know their rights.
– Update your payroll software to reassess your staff every time you run payroll and see if your duties have changed.
-Ensure your employee’s data is correct and in the format your pension provider prefers.
-Run your Workplace Pension.
-Register your scheme with TPR.
-Refund staff who want to opt out and enrol those who choose to join (who haven’t been enrolled automatically).
-Keep up to date with pension rule changes.
-Annually review your pension provider and the investment fund you recommend.
What happens if you get it wrong?
TPR can issue fines of up to £10,000 a day and 2 years imprisonment. If you mess this up you could lose the confidence of your staff, damage their morale and affect sales.
What to do next?
The Government already knows when you have to start your Workplace Pension – Do you?
Give us a call and we’ll put you in touch with people who can help.