AUTO-ENROLMENT A presentation by Bill Walker Partner Greyfriars Asset Management LLP Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority

For professional advisers only People are living longer Source: Office for National Statistics, Pension Trends Chapter 2, 16 February 2012.

For professional advisers only Its unaffordable Source: Office for National Statistics, Pension Trends Chapter 5, 27 October 2011.

Happy 100 th birthday 1 In 1917 = 24 Telegrams In 1952 = 255 Telegrams In 2007 = 8,439 Telegrams By 2046 = 214,700 Telegrams 1 Source: The official website of The British Monarchy, January 2012

AUTO-ENROLMENT All businesses Auto-enrol all eligible employees (including directors) Qualifying Workplace Pension Scheme By your staging date

STAGING DATE Based on the number of employees as at 1 st April 2012 The Pensions Regulator – inform employers 12 months prior thepensionsregulator.gov.uk – PAYE Ref.

STAGING DATE 250 plus employeesOct 2012 – Feb /4/14 - 1/4/15 Less than 501/6/15 - 1/4/17 New employers between1/4/ /9/17 Staging date between1/5/17 - 1/2/18

ELIGIBLE EMPLOYEES Eligible jobholder Entitled worker Non-eligible jobholder

PENSIONABLE EARNINGS Qualifying earnings – includes bonus, overtime, sick pay, maternity/paternity, adoption pay (between £5,668 - £41,450 p.a.) (increased annually) 7% of all earnings 9% of basic pay

PHASING IN Qualifying earningsTotal Employer minimum Oct 12 – Sept 172%1% Oct 17 – Sept 185%2% Oct 18 onwards8%3%

PHASING IN 7% of all earnings Total Employer minimum Oct 12 – Sept 172%1% Oct 17 – Sept 185%2% Oct 18 onwards7%3%

PHASING IN 9% of basic pay Total Employer minimum Oct 12 – Sept 173%2% Oct 17 – Sept 186%3% Oct 18 onwards9%4%

OPTING OUT Employees can opt-out at any time Within one month – refund of contribution After one month – no refund DIRECTORS – TAKE CARE!!

WHO WITH? Insurance companies Scottish Life, Standard Life, Aviva Scheme by scheme consideration Number of employees, average age\salary\contribution Profitable At 1% each – probably not

NATIONAL EMPLOYMENT SAVINGS TRUST (NEST) Low to medium earners More expensive than insured 1.8% deducted off each contribution plus 0.3% p.a. annual management charge Limited fund choice Cautiously invested even for younger people Currently doesnt allow transfers in or out Provider of last resort

SANCTIONS Stage 1 – Compliance notice - time scale Stage 2 – Fixed penalty £400 Four weeks minimum to sort it out Stage 3 – Daily penalties 1-4£ £ £10,000

SUMMARY Start now ,000 employers per month – staging date Industry wont cope Take advice on: -Definition of pensionable pay -% contributions -Which provider

AUTO-ENROLMENT A presentation by Bill Walker Partner Greyfriars Asset Management LLP Greyfriars Asset Management LLP is authorised and regulated by The Financial Conduct Authority