7 Steps to Prepare for Automatic Enrolment
The Pensions Regulator (TPR) is the main Government body responsible for the implementation and regulation of Automatic Enrolment. It has powers given to it via the Pensions Act 2008 and has designed an “employer compliance regime” based on the following steps:
- Engaging “stakeholders” by raising awareness of the new duties among the intermediaries employers rely on;
- Increasing employer understanding of their duties by a communication and education programme;
- Monitoring (through registration) whether or not employers are complying with the Automatic Enrolment duties.
In order to assist in this matter, TPR has produced many guides, the first of which details what they consider to be the 7 Steps to Prepare for Automatic Enrolment. These are as follows:
- Know your staging date – when to act
- Assess your workforce
- Review your pension arrangements
- Communicate the changes to all your workers
- Automatically enrol your “eligible jobholders”
- Register with the Pensions Regulator and keep records
- Contribute to your workers’ pensions
The full document can be found at:
http://www.thepensionsregulator.gov.uk/docs/7-steps-employer-checklist-July2012.pdf
The list of employer duties is long and therefore guidance may be required. Do not assume this is a function of your Accountant. Many Accountants are not offering any assistance other than perhaps providing the Payroll data to feed into the Scheme Provider’s software.
Single Directors, running a limited company and sole-traders do not need to have a Qualifying Workplace Pension Scheme in place, however if they employ someone else (ie their spouse or partner) they do.