There's a lot to do! Our checklist could help you understand what you need to consider both now and in the future:
- Check your staging date and ensure you are well prepared to begin automatic enrolment from that date.
- Check if your current plan complies with the new regulations (a 'qualifying pension plan'). If not, make the necessary changes or put in place an alternative plan. Remember that although, subject to our agreement, your existing plan may be used for qualification purposes, you will still need to consider how you automatically enroll new eligible jobholders.
- Have a contract in place with the relevant pension provider to pay the statutory contributions.
- Identify current eligible jobholders who should be automatically enrolled, those who should be offered the option to join and others who should receive general information on pension provision.
- Decide how you will carry out payroll, plan eligibility assessment and pension contribution calculations.
- Consider how you will manage the opt-out process.
- Decide whether you plan to implement the three month deferral for automatically enrolling eligible jobholders - if so you will need to notify all jobholders of your intentions.
- Do you need to increase the contributions that you and / or your employees need to pay from April 2018 and April 2019 to meet the minimum contribution requirements?
- Decide on the contribution level - will this be certified?
- Decide whether contributions should be tiered for different groups.
- Understand how the first month's contributions will be handled.
- Ensure financial provision is made for a change in pension contributions.
- Select an appropriate default arrangement for the plan, which is also compliant with the charge cap.
- Introduce controls to ensure mandatory disclosure requirements are met, including communications with The Pensions Regulator.
- Ensure your record-keeping processes can handle the new demands.
- Develop a robust communications plan.
- Consider when your re-enrolment date will be. This will usually be 3 years from the initial staging date (with scope to move the date up to 3 months earlier/later).
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Automatic enrolment & qualifying workplace pensions
The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties.
Better Workplace Pensions - we're here to help
On the 6th April 2015, the Government introduced additional requirements for workplace pensions.
Things to think about
The rules are now in place and there are a number of issues you will need to consider to practically implement the regulations.
Would you like to use your Prudential plan for qualifying purposes?
If you would like your plan to qualify under the new rules, we may be able to help you, but you will need to let us know six months before your staging date.