Automatic enrolment is one of the great changes implemented by the government into the pension section. The introduction of such enrolment has pushed the employees to save money which they will able to enjoy after their retirement.
Who are eligible for auto enrolment?
• Aged between 22 and State Pension age
• Earn more than £10,000 a year
• Work in the UK
After the workers are automatically enrolled into a workplace pension scheme by their employer, they either have the option to join or to opt out within a month. And, if nothing is nothing is done, they will be enrolled into the scheme.
On the other hand, employers should keep paying contributions in their part, up-to-date records of your employees and manage opt-in and opt-out requests.
How should employers manage auto-enrolment?
Start early
You need to prepare for auto enrolment very early. So, whenever you get a letter from the Pensions Regulator, you need to follow the nomination instructions and research for the pension scheme immediately.
Meet obligations
As there are expensive fines charged by The Pension Regular for being non-complaint for a long period of time, being an employer, you need to meet all the obligations. Along with that, you need to communicate with your employees clearly about how the pension scheme will work.
Ensure you have correct payroll information
You need to access your payroll system as they are the most important. For managing the auto-enrolment properly, contributions made to workplace pensions should match with the payroll information and be fully explained in the payslips issued to your employees.
Classify your employees properly
For the auto enrolment, employees need to be assessed every month as they might become eligible and opt for a pension scheme. Moreover, you’ll need to help in opt-outs, opt-ins and make employees aware about their pay and the level of contribution if there is any.
Get professional help
If you are not sure about pension schemes, expert financial advisers can guide you. Not only they will help you choose the right scheme, but also helps you with the procedures of automatic enrolment.
