Workplace Pensions reform and automatic enrolment A brief overview Linden Stables GCVS Employers’ Advice Service November 2015

Just before we begin….. Please don’t shoot the messenger

Workplace Pensions Reform When?? Check your Staging date

Workplace Pensions Reform Assess the workforce Each worker’s age Where they are based – UK ? How much they earn This will determine if they are an Eligible Jobholder (must be auto enrolled) Non-eligible Jobholder (can opt in) Entitled Worker (can ask to join a pension)

Workplace Pensions Reform Categories of workers

Earnings triggers Pay reference period Lower level of qualifying earnings Trigger for auto enrolment (if above this) 1 week£112£192 Fortnight£224£384 1 month£486£833 Annual£5,824£10,000

Eligible jobholder Non eligible jobholder Entitled worker None of these AgeEarns p.a. 17£4,000 x 42£26,000 x 75£6,000 x 22£ x 21£11,000 X ! 66£6,000 x 63£10,500 x OR SPA depends X on age andgender

Workplace Pensions Reform Contributions phasing

Personalised information must be given to all categories of worker Eligible jobholders Non eligible jobholders Entitled workers Can be by letter or , but must be personal to them, NOT signposting to general info. Workplace Pensions Reform Giving information

Workplace Pensions Reform What if they are already in a pension scheme? If a jobholder is already in a qualifying workplace pension scheme with the employer there are no duties to a/e them or provide information. Onus on employer to check it’s a qualifying scheme + certify contributions basis (+ certify on Declaration of Compliance how employer is meeting their duties)

Workplace Pensions Reform Monitoring for assessment Various dates that will trigger an assessment Staging date First day of employment 22 nd birthday (+ 16 th birthdays) Date of receipt of opt in or joining notice End date of postponement period First day of each pay reference period (for non eligible jobholders and entitled workers)

Workplace Pensions Reform Postponement Employer can issue written notice to postpone automatic enrolment for up to 3 months Can be used for one, some, or all workers Gives flexibility Useful for variable earnings Useful for probation period ! Employee can opt in during postponement period

Workplace Pensions Reform Opting out Employee CAN opt out if they choose Opt out can only happen after they have become an active member / received the enrolment information Opt out notice must be given within a set period of a month (to get full refund) Employer must automatically re-enrol them every 3 years if still an eligible jobholder

Workplace Pensions Reform Pension Schemes Pension scheme must meet minimum requirements NEST scheme is one option available for employers who do not already have a qualifying scheme in place or who wish to set up another. Important to take Independent Financial Advice

Workplace Pensions Reform Declaration of Compliance ALL employers must register with the Pensions Regulator by making a Declaration of Compliance (DoC) Within 5 months of (after) your staging date DoC is done online You can start the process early Checklist is available on TPR site to help you prepare

Workplace Pensions Reform Protecting individuals Unlawful for employer to induce a person to opt out/treat less fairly because of membership or potential membership make recruitment decisions dependent on the person opting out of pension NB Safeguards apply from 1 st July 2012, regardless of staging date

Case Studies Case study 1; Leon (age 20, earns £17k) Non-eligible jobholder as under 22 Provide information Enrol him if he asks to opt in + make employer contributions Auto enrol him when he reaches 22 if not already in scheme

Case Studies Case study 2: Lee (age 27, earns £4,550) Entitled Worker - earns less than £5,824 Provide information Enrol her in a scheme if she gives Joining Notice (no employer ££ required) Assess earnings in each pay reference period : may become Non- Eligible or Eligible Jobholder if earnings increase.

Workplace Pensions Reform What must employers do? - Overview Assess your workforce Choose a pension scheme Nominate a contact Auto enrol eligible staff Make a Declaration of Compliance Make pension contributions (eventually 3%) Process any opt-outs/opt ins and joining requests Avoid inducement and prohibited activity Keep accurate records Provide workers with information Re-enrolment every 3 years

What to do now 1Check your staging date 2Assess your workforce/ raise awareness 3Review your pension arrangements 4Find a pension provider if required 5Think about the administrative+payroll arrangements that will be needed. 6Nominate a contact for the Pensions Regulator Make sure that you are ready to comply with the law by the time it reaches you!

Sources of help and info Staging dates/ Guidance notes / details / updates Interactive Auto enrolment PLANNER Webinars Guide to choosing a scheme HELPLINE Independent Financial Advisers/ Employee Benefits Consultants

Some auto enrolment schemes for smaller employers National Employment Savings Trust (NEST) The Peoples’ Pension NOW:Pensions GenLife Take advice !!

Any questions?