Automatic Enrolment Solutions Ltd
Automatic Enrolment and You...
Law surrounding Workplace Pensions has changed significantly in response to a number of trends, namely that on average people are living longer and that approximately 7 million people in the UK are not saving enough for their retirement.
Automatic Enrolment has been introduced by the Government to help more people save for their future retirement provision, through their workplace. For the first time in history, employers have been required by law to set up a Pension Scheme and fund employer contributions for their workforce.
Automatic Enrolment has been recognised as an effective way to overcome people's saving inertia by turning the default from non-saving into saving.

Between now and 2018 every employer in the UK (with more than one worker) will need to have a Workplace Pension Scheme in place and start enrolling their workers. Many workers will be automatically enrolled and others will need to be enrolled if they request it. By October 2018, over 1.2 million employers are going to enrol 11 million eligible workers into a Workplace Pension Scheme.

The Department of Work and Pensions (DWP) is taking employer compliance very seriously and The Pensions Regulator (TPR) has been given the scope to "police" employers, who will face hefty penalties for failure to comply with their duties. For the first time in the history of UK Pensions, employers will be required to:-
  • Set up and register a Workplace Pension Scheme suitable for Automatic Enrolment
  • Automatically enrol certain workers (known as Eligible Jobholders) into that Pension Scheme
  • Arrange membership of a Pension Scheme for certain other workers
  • Make contributions for Eligible Jobholders, and certain other workers
  • Manage the Automatic Enrolment, joining and opt-out processes
  • Provide specific information and communications to their workers, pension scheme providers and The Pensions Regulator
  • Keep records of how they have fulfilled, and will continue to fulfil, their duties

Without a doubt, the introduction of Automatic Enrolment Workplace Pensions will present a number of new challenges to employers' businesses. We believe employers will need expert help and support to understand the impact and changes that will need to be made within their businesses in order to comply with their new employer duties.
Employers Who Do Not Currently Have a Company Pension Scheme
Employers with no existing Pension Scheme will have the most to do - depending on the number of staff they employ. Employers may need expert help and guidance to understand their duties, the impact on their business and the necessary changes they will need to make. They will need to review their workforce, ascertain and identify which employees will be subject to the Automatic Enrolment requirements and implement and administer a Qualifying Workplace Pension Scheme that allows them to satisfy their employer duties.
Employers Who Have an Existing Company Pension Scheme
Many employers may well believe that their existing pension arrangement will meet the criteria for a "Qualifying Workplace Pension Scheme". Whilst it may be possible to utilise the existing scheme to meet the Automatic Enrolment requirements, we would strongly recommend undertaking a fully Independent Evaluation of their scheme to ensure that it is indeed "fit for purpose". It is imperative that the scheme meets the "Quality" criteria and is able to facilitate all the features and requirements for a qualifying, compliant scheme, including Automatic Enrolment, acceptance of minimum contributions, default investment options and most importantly a robust Reporting functionality.
Find Out More.....
Find out how to prepare for Automatic Enrolment by contacting us to request  a copy of our 'Employers Step by Step Guide to Automatic Enrolment'. AES - Contact AES - Employers Guide
The Financial Conduct Authority does not regulate some forms of Auto Enrolment.