1. DM 3291466 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. This presentation is used at events held for professionals working in the care sector. April 2016 Automatic enrolment Care professionals event The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. Information for care professionals

2. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Topics Why is automatic enrolment being introduced? What employers need to do Staging dates and overall timetable Who are your workers? Worker categories and the duties and rights for pension scheme enrolment Communicating with workers Qualifying earnings and the automatic enrolment processes Postponement Opt ins and opt outs Monitoring worker status and re-enrolment Keeping records Declaration of compliance

3. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Why is automatic enrolment being introduced? Past and predicted trends in the life expectancy period of 65 year old men and women in the UK as of 2004 and 2010 7 million people are under-saving There are currently four people of working age for every pensioner  by 2050 there will be just two.

4. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment legislation gives employers a duty to: automatically enrol all staff who are eligible (‘eligible jobholders’) other staff who have the right to ask to opt in or join a pension communicate to their staff manage opt outs and promptly refund contributions every three years, automatically re-enrol staff who are eligible complete a declaration of compliance with the regulator keep records maintain payments of pension contributions The employee safeguards mean that employers:  must not induce staff to opt out or cease membership of a pension, and  must not indicate, when recruiting new staff, that the decision to employ them will be influenced by whether or not they intend to opt out. Overview of legal duties and safeguards

5. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Customising the steps for different employers

6. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging The employer duties apply to each employer from their staging date: –the duties apply to all of the employer’s workers from that date. An employer’s staging date will be based on the PAYE scheme or schemes that were being used on 1 April 2012. –After 1 April 2012, any change to the PAYE schemes being used will have no effect on the staging date. However, new employers* will go last, from May 2017. Oct 2012 May 2017 April 2014 June 2015 Large employers Medium employers Small/micro employers New * employers Feb 2018 *Employers that did not exist (or were not using a PAYE) as at 1 April 2012. Do not assume your clients know their staging date - check this on our website

7. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates for new employers (post 1 April 2012) PAYE income is first payable in respect of any workerStaging date From 1 April 2012 up to and including 31 March 20131 May 2017 From 1 April 2013 up to and including 31 March 20141 July 2017 From 1 April 2014 up to and including 31 March 20151 August 2017 From 1 April 2015 up to and including 31 December 20151 October 2017 From 1 January 2016 up to and including 30 September 20161 November 2017 From 1 October 2016 up to and including 30 June 20171 January 2018 From 1 July 2017 up to and including 30 September 20171 February 2018

8. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging profile (excludes those without eligible jobholders and employers with no workers) Very large volumes staging from January 2016 * Based on age and earnings data from HMRC We estimate* that almost a million employers yet to stage will have full automatic enrolment duties

9. DM 3287447 v5E These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is included in the automatic enrolment duty? A person may be subject to the automatic enrolment legislation if they are: aged 16 to 74 (inclusive), and work or ordinarily work in the UK...... whether or not they are full time or part time, permanent or temporary. However, the truly self employed are not subject to automatic enrolment. C

10. DM 3287447 v5E These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is the employer of the personal care assistant? If the carer is employed by another company (perhaps because the carer works for an agency or their own limited company), the service user will not be considered the employer. If the carer is paid by another company or agency, that company will have the responsibility for any automatic enrolment duties, not the service user. However, a payroll bureau that processes a payment on behalf of a service user, company or agency is NOT responsible for any automatic enrolment duties – as the bureau is only making the payment on their behalf. If the carer works for a number of different employers, each employer / service user should only look at the carer’s earnings that they pay them.  So, a carer could be automatically enrolled by more than one employer, or indeed none of them. C

11. DM 3287447 v5E These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What if the carer says they are self employed? The service user should not assume that a carer is exempt from automatic enrolment, just because they tell you that they are self employed. The service user should consider if the carer is normally expected to do the work themselves.  If, at any time, the carer can freely substitute somebody else, then they can be considered truly self employed.  However, if they are normally expected to do the work themselves (unless they are unable to do it themselves, eg they are on holiday or sick), the carer is considered to have a contract to perform work or services ‘personally’...  and the service user will need to judge whether or not the carer is doing the work as part of their own business. C

12. DM 3287447 v5E These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is the carer working as part of their own business? If a carer considers themselves self employed and has a ‘personal’ contract: The service user will need to consider whether the carer is working as part of their own business or not. There are some factors that will help decide if the carer is working as part of their own business. Does the carer: –have control of the hours they work? –have their own public liability insurance? –provide care services for other people? –provide their own equipment? –register themselves as self-employed with HMRC? –not get paid when on holiday or unable to work due to sickness?  If most or all of the above are true, it would be reasonable to consider that they are undertaking the work as part of their own business. If they are undertaking the work as part of their own business, they can be considered ‘truly self-employed’ and are not subject to automatic enrolment. C

13. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Qualifying earnings Age range 16-2122-SPA*SPA*-74 Under £5,668 † pa Between £5,668 pa and up to £9,440 † pa Non-Non-Eligible Jobholder Non-Eligible Jobholder Eligible Jobholder More than £9,440 † pa Non-Eligible Jobholder * SPA = State Pension Age ** Figures for 2016/17 Up to £5,824** pa Over £5,824 pa and up to £10,000** pa More than £10,000** pa Eligible jobholder Employer must automatically enrol eligible jobholders into an automatic enrolment pension scheme Worker categories NonNon-eligible jobholder -Eligible Jobholder Non-eligible jobholder Non-eligible jobholder Non-eligible jobholders can opt in to an automatic enrolment pension scheme Entitled worker Can request to join a pension scheme

14. DM2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. AE earnings trigger v Pay Reference Periods 2016-17 † Pay Reference Period/Cycle Earnings trigger for automatic enrolment Annual£10,000 pa Bi-annual£4,998.00 1 quarter£2,499.00 1 month£833.00 4 weeks£768.00 Fortnight£384.00 1 week£192.00 † For other Pay Reference Periods (PRP) durations, multiply the number of weeks in the PRP by the weekly amount (eg £192.00) or number of months by the monthly amount (eg £833.00) etc - or pro-rata if not an exact multiple of any of the above. N.B. The Secretary of State will review these figures each tax year. C

15. DM2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Are joiners entitled to an employer contribution? 2016-17 Pay Reference Period/Cycle Those earning this or less not entitled to an employer contribution Earnings trigger for automatic enrolment Annual£5,824 pa£10,000 pa Bi-annual£2,912.00£4,998.00 1 quarter£1,456.00£2,499.00 1 month£486.00£833.00 4 weeks£448.00£768.00 Fortnight£224.00£384.00 1 week£112.00£192.00 N.B. The Secretary of State will review these figures each tax year. C

16. DM2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Assessing your staff Employers will need to assess all their staff on their staging date –unless they choose to use ‘postponement’ (described in later slides). Their qualifying earnings must be used to assess their category (ie eligible jobholder, non-eligible jobholder or entitled worker). Qualifying earnings is any component of pay that could be considered one of these pay elements (an employer should use their reasonable judgement): –salary/wages, commission, bonuses, overtime and some statutory payments (excluding expenses and dividends). Eligible jobholders must be automatically enrolled into a suitable scheme –but any active member of a ‘qualifying’ pension scheme with that employer will not need to be automatically enrolled. After the staging date, employers will have to: –assess all new staff who join them –assess some staff every pay period (see slide on ‘Monitoring eligibility’) –assess some staff again every three years (see slide on ‘Re-enrolment’).

17. DM2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Exception - staff in notice period If notice is given or received by a member of staff (eg resignation or dismissal): before, or up to 6 weeks after, the automatic enrolment/re-enrolment date then the employer does not have to enrol them. During their notice period that member of staff does not have a right to opt in or join a pension. If notice is withdrawn, then the enrolment duty will be effective from this date.

18. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Postponement Postponement suspends the duty of automatic enrolment and the need to assess and can be used: –at the employer’s staging date for any or all existing staff –on the first day of employment for any new joiner after the staging date, and –on the date a member of staff meets the criteria to be an eligible jobholder. Only one postponement per member of staff can be made at a given time. Each worker can be postponed from one day up to maximum of three months. The employer must notify any postponed member of staff within six weeks and a day of the start of postponement. The member of staff has the right to opt in or join during postponement. Employer must assess on the last day of postponement and: –automatically enrol eligible jobholders, and –for those staff not eligible, monitor them each future pay period. Postponement does not change or delay the staging date

19. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Monitoring eligibility for automatic enrolment After the staging date, employers will have to assess, every pay period, any worker who: i.is not an active member of a qualifying pension scheme, and ii.is not under postponement or the transitional period, and iii.has not previously been automatically enrolled (or assessed as an eligible jobholder whilst an active member of a qualifying scheme Ϯ ). Workers assessed as an eligible jobholder would then need to be automatically enrolled (or postponed). Those workers that do not fall into the above category should be left until the next cyclical re-enrolment date (see slide on cyclical re-enrolment). Ϯ A worker who has simultaneously been an eligible jobholder and an active member of a qualifying scheme since the later of: the employer’s staging date; or the date they started work for the employer; or the last day of postponement.

20. DM 3291180 V1F These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Check suitability of payroll and IT systems What software will be used to carry out: –assessment –enrolment –communications, and –pension contribution calculations? Most payroll providers offer these services but, alternatively, non-payroll software or services could be used. For service users who do not use a payroll provider (eg users of HMRC’s Basic PAYE Tool), we have published a Basic Assessment Tool (BAT) which also calculates pension contributions - see:  www.tpr.gov.uk/working-with-clients-without-compatible-payroll-software.aspx www.tpr.gov.uk/working-with-clients-without-compatible-payroll-software.aspx C

21. DM 3291180 V1F These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Pensionable earnings Pensionable earnings can be based on Qualifying Earnings. If banded qualifying earnings are used to determine pensionable pay: –pension contributions are determined by the rules of the scheme, and –will be based on banded earnings between the lower earnings threshold and upper earnings limit (currently £5,824* pa and £43,000* pa, pro-rated depending on the pay frequency). For example, for a weekly worker the bands are £112 and £827 - so if they earned £212 in a given week, their pension contribution would be X% of £100 (£212 minus £112). If they earned more than £827 in any one week, their contributions that week would be capped at X% of £715 (£827 - £112). For four weekly paid people, the thresholds are £448 and £3,308 in 2016/17. * Pro-rata of annual amount used in each Pay Reference Period. These figures are for 2016-2017. The Secretary of State will review this amount each tax year. C

22. DM2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Thresholds v Pay Reference Periods (PRP) 2016-17 † Pay Reference Period/Cycle Lower Earnings Threshold (LET) Earnings trigger for automatic enrolment Upper Earnings Limit Annual£5,824 pa£10,000 pa£43,000.00 pa Bi-annual£2,912.00£4,998.00£21,500.00 1 quarter£1,456.00£2,499.00£10,750.00 1 month£486.00£833.00£3,583.00 4 weeks£448.00£768.00£3,308.00 Fortnight£224.00£384.00£1,654.00 1 week£112.00£192.00£827.00 † For other Pay Reference Periods (PRP) durations, multiply the number of weeks in the PRP by the weekly amount (eg £192.00) or number of months by the monthly amount (eg £833.00) etc - or pro-rata if not an exact multiple of any of the above. N.B. The Secretary of State will review these figures each tax year. C

23. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Min DC 8% total * Min DC 5% total * Minimum DC 2% total contribution* Pension scheme minimum contributions April 6 th 2019 † April 6 th 2018 † * % of qualifying earnings Minimum DC 1% employer contribution* Min DC 2% employer * Min DC 3% employer * Phase 1 Phase 2 Phase 3 Oct 2012 May 2017 April 2014 June 2015 Large employers Medium employers Small/micro employers New employers Feb 2018 † Subject to parliamentary approval

24. DM 3291180 V1F These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Choosing a pension If there is no one who needs to be automatically enrolled, then a pension scheme does not need to be set up... –but it may be useful to decide which pension would be used if someone asks to join or meets the criteria to be automatically enrolled. The employer must have an automatic enrolment pension scheme in place by their staging date if they have someone to automatically enrol on this date. The employer has the right to select the pension and can choose to decline any request to contribute to other schemes. If the employer does use a scheme requested by a member of staff they need to check that it can be used and is qualifying. For more information go to www.tpr.gov.uk/what-to-consider-when-choosing-a-scheme.aspx www.tpr.gov.uk/what-to-consider-when-choosing-a-scheme.aspx The National Employment Savings Trust (NEST) is a pension scheme that has been established by the government for employers like you. It must accept any employer that wishes to join. C

25. DM3276378 V1D These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tax relief: two mechanisms Many small employers and their advisers may not realise that there are two ways that the tax relief on staff members’ pension contribution can be applied: –Net Pay Arrangement –Relief at Source (‘not Net Pay Arrangement’) Many pension schemes only support one tax relief method, although some pension providers allow the employer to choose either method. It is vital to understand which system your clients are going to use, to avoid miscalculating the contributions and tax due. For more information look at the ‘tax relief’ section at: www.tpr.gov.uk/what-to-consider-when-choosing-a-scheme.aspx www.tpr.gov.uk/what-to-consider-when-choosing-a-scheme.aspx

26. DM3276378 V1D These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Relief at Source (‘not Net Pay Arrangement’) For this tax relief mechanism: –only 80% of the calculated contribution is deducted because... –... the member’s pension contribution will be taken after tax has been deducted, and –the pension provider claims 20% tax back from HM Revenue & Customs (HMRC) and adds it to their pension pot. Higher rate taxpayers will have to complete an HMRC Self Assessment tax return in order to reclaim the rest of the tax paid on their contributions. Staff who earn no more than their income tax personal allowance (£11,000 a year in 2016/17) do not pay tax, but they would still get the 20% tax relief (even though they haven’t paid any income tax on their contributions). We suggest that employers with staff who do not pay income tax, choose a pension which operates Relief at source. Group Personal Pensions, the government scheme (NEST) and some master trust pensions usually calculate tax relief this way.

27. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Opting in and joining Entitled workers can request to join a scheme at any time, including during postponement. Jobholders can opt in at any time, including during postponement. However, workers will not necessarily know whether they are jobholders or entitled workers and this could vary over time. All requests (whether an opt in or join request) are treated the same way. On receipt of any request to opt in or join a pension from a worker, employers need to: –assess the worker, to see if they are a jobholder or entitled worker, then –enrol jobholders into an automatic enrolment scheme, and –enrol entitled workers into a scheme of the employer’s choice. A jobholder must not be required to carry out any further action to achieve active membership (eg the pension scheme should have a default fund).

28. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Opting out Workers automatically enrolled (or who have opted in) may opt out. Employer must inform staff of their right to opt out and how to opt out. The employer must not give out or send out opt out forms: –requests to opt out must be handled by the scheme provider, and –completed forms would normally be sent to the employer. A one calendar month opt out window starts on the later of two dates: once the worker is an active member of the pension scheme, or when the employer gives a notice of enrolment letter/email to the worker. The worker will get a full refund of all contributions. Early opt outs (before the opt out window starts) - are not allowed. After the opt out window has closed, the worker may still request to cease membership of the pension scheme (under the scheme rules). A worker who has opted out does not need to be assessed again until the employer’s next re-enrolment date (occurs approx every 3 years).

29. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Communicating to staff Employers will need to communicate to their staff informing them of their rights: –enrolment –when using postponement –and to explain a worker’s right to opt in or join a scheme. The deadline for most communications is within 6 weeks*. Communications must be sent directly to the individual (eg by letter, email, HR web portal). We have provided example ‘template’ letters, which may be customised. www.tpr.gov.uk/writing-to-your-clients-staff.aspx * Postponement 6 weeks from the day after the assessment date

30. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Cyclical re-enrolment Cyclical re-enrolment occurs around every 3 years. Employer should choose a re-enrolment date which can be any day, up to 3 months before or after the third anniversary of their staging date, or previous re-enrolment date (eg an employer who staged on 1 Oct 2012 may choose any day between 1 July and 31 Dec 2015). On the re-enrolment date, workers will need to be assessed and (if an eligible jobholder) automatically re-enrolled † if these conditions apply: –they are not already an active member of a qualifying scheme; and –they are not being monitored every pay period (ie they have previously been automatically enrolled or assessed as an eligible jobholder whilst an active member of a qualifying scheme); and i.they opted-out or ceased membership of a qualifying scheme more than 12 months ago - or ii.if they opted-out or ceased membership of a qualifying scheme within the previous 12 months - and the employer wishes to automatically re- enrol them (ie the employer can choose whether to do this or not). Postponement cannot be used at re-enrolment. † Exceptions may be applied under April 2015 regulations (eg if in notice period or have tax protection)

31. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Record-keeping Employers must keep records about their workers and the pension scheme used to comply with the employer duties (pension providers and trustees will also have duties to keep records). An employer can use electronic or paper filing systems to keep or store any records, as long as these records can be produced in a legible way. Most records must be kept for six years. Those that relate to opting out must be kept for four years. The records must be provided to The Pensions Regulator, on request. We can conduct an inspection, if we have reasonable grounds to do so (for example, this may be as a result of a whistleblower alert).

32. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Declaration of compliance After staging, employers must complete a declaration of compliance –and it must be completed within five months of the staging date and –within five months of the 3rd anniversary of the staging date (or previous automatic re-enrolment date) - this change was effective 6 April 2016* Employers may receive a penalty fine if they do not complete their declaration on time. Employers will need to provide certain details, for example: –which pension schemes were used to comply with the duties, –(after cyclical re-enrolment only) their chosen automatic re-enrolment date, –the number of eligible jobholders automatically enrolled into each scheme. All postponements applied at the staging date must have come to an end before the declaration can be completed. You can start the online process early and partially complete your declaration. * Previously the deadline for re-declaration was two months after the chosen re-enrolment date.

33. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Support for employers

34. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Customising the steps for different employers

35. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tell us if you employ people in your home C

36. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do you pay your domestic employee? C

37. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do you employ a personal care assistant? C

38. DM3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. If you don’t employ anyone tell us If an employer receives a staging date letter from us and they do not believe they are an employer because: –they no longer employ people in their home (cleaners, nannies, personal care assistants etc) –the employee is paid for by an agency and it pays their National Insurance contributions You will need your PAYE reference and letter code  then email customersupport@autoenrol.tpr.gov.ukcustomersupport@autoenrol.tpr.gov.uk Let us know if circumstances change, as automatic enrolment duties may apply. It is not for employers who have no staff to automatically enrol on their staging date - employers will need to write to their workers and tell them they can ask to join a pension scheme and complete a declaration of compliance. C

39. DM3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. See your staging date 1

40. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Your staging date

41. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do you employ anyone between 22 and SPA?

42. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do they earn more than £768 in a 4 week pay period?

43. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do you need to provide a pension? C

44. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Need to provide a pension from your staging date C

45. DM 3279072 v2 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Steps for those who have to provide a pension C

46. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Any questions?

47. DM 3291180 V1F These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful tools Nominate a contact: https://automation.thepensionsregulator.gov.uk/Nomination https://automation.thepensionsregulator.gov.uk/Nomination Staging date tools: –finding out a staging date www.tpr.gov.uk/employers/tools/staging-date.aspx www.tpr.gov.uk/employers/tools/staging-date.aspx –bringing staging date forward www.autoenrol.tpr.gov.uk www.autoenrol.tpr.gov.uk C

48. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful tools Find a letter code online: https://automation.thepensionsregulator.gov.uk/LetterCode https://automation.thepensionsregulator.gov.uk/LetterCode Tell us if you are not an employer: https://automation.thepensionsregulator.gov.uk/notanemployer https://automation.thepensionsregulator.gov.uk/notanemployer Bulk declaration of compliance (file upload): https://www.autoenrol.tpr.gov.uk/ https://www.autoenrol.tpr.gov.uk/ Work out pension contributions: www.tpr.gov.uk/employers/employer-contributions.aspx www.tpr.gov.uk/employers/employer-contributions.aspx C

49. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links Care professional presentation: www.tpr.gov.uk/doc-library/ae-presentations.aspx www.tpr.gov.uk/doc-library/ae-presentations.aspx The essential guide to automatic enrolment: www.tpr.gov.uk/the_essential_guide_for_people_who_employ_their_own_care _and_support.pdf www.tpr.gov.uk/the_essential_guide_for_people_who_employ_their_own_care _and_support.pdf Our detailed guides for employers and pension professionals: www.tpr.gov.uk/pensions-reform/detailed-guidance.aspx www.tpr.gov.uk/pensions-reform/detailed-guidance.aspx Information about declaration of compliance: www.tpr.gov.uk/completing-the-declaration-of-compliance.aspx www.tpr.gov.uk/completing-the-declaration-of-compliance.aspx Letter templates for employers: www.tpr.gov.uk/writing-to-your-clients-staff.aspx www.tpr.gov.uk/writing-to-your-clients-staff.aspx Frequently asked automatic enrolment questions: www.tpr.gov.uk/automatic-enrolment-enquiries.aspx www.tpr.gov.uk/automatic-enrolment-enquiries.aspx C

50. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links More information about pensions: Schemes with master trust assurance*: www.tpr.gov.uk/employers/finding-a-provider.aspx www.tpr.gov.uk/employers/finding-a-provider.aspx The Association of British Insurers (ABI) list of GPP providers: www.abi.org.uk/Insurance-and-savings/Products/Pensions/Saving-into-a- pension/Automatic-enrolment/Providers www.abi.org.uk/Insurance-and-savings/Products/Pensions/Saving-into-a- pension/Automatic-enrolment/Providers Pensions and Lifetime Savings Association (PLSA) Pension Quality Mark: www.pensionqualitymark.org.uk/pqmreadyschemes.php www.pensionqualitymark.org.uk/pqmreadyschemes.php National Employment Savings Trust: www.nestpensions.org.uk www.nestpensions.org.uk A quick guide to selecting a pension scheme: www.tpr.gov.uk/find-a-new-pension-scheme-for-clients.aspx www.tpr.gov.uk/find-a-new-pension-scheme-for-clients.aspx * the voluntary master trust assurance framework was developed by the Institute of Chartered Accountants of England and Wales (ICAEW) in association with TPR to enable master trusts to obtain independent assurance that their scheme governance and administration meet an industry-wide benchmark of quality.

51. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. We are here to help! Request a guest speaker: https://secure.thepensionsregulator.gov.uk/speaker-request.aspx https://secure.thepensionsregulator.gov.uk/speaker-request.aspx Contact us at: www.tpr.gov.uk/contact-us.aspx www.tpr.gov.uk/contact-us.aspx Subscribe to our care professionals monthly email: rebecca.woodley@tpr.gov.uk rebecca.woodley@tpr.gov.uk Thank you The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. C

52. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Additional slides

53. DM3276378 V1D These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Net Pay Arrangement For this tax relief mechanism: –no tax is payable on the member of staff’s pension contributions, so the employer deducts 100% of the contributions due, and –pays them to the pension provider (ie gross of tax). If the member earns below their income tax allowance (personal allowance is £11,000 in 2016/17), the member will not get any tax relief benefit. Higher rate taxpayers may prefer this method, as they would immediately get full tax relief through payroll without having to complete an HMRC Self Assessment tax return. Contract based pensions, such as Group Personal Pensions (GPPs) may not use this mechanism. Some, but not all, master trust pensions calculate tax relief this way.

54. DM3276378 V1D These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tax relief example A weekly paid member of staff, has a basic salary of £10,400 per annum and: is a member of a pension scheme where only basic pay is pensionable, and is paying a 1% member pension contribution (ie 1% of £200 per week) [the employer will also pay a contribution, but this is not affected so is not shown]. Under Net pay arrangement: the full £2.00 per week is deducted from their gross pay and paid into their pension pot and as the individual earns under the HMRC personal tax allowance threshold, they don’t pay income tax and are not able to claim any money from HMRC, so the cost to the employee of the £2.00 member’s contribution is £2.00. Alternatively, under Relief at source: the pension provider claims £0.40 tax relief (20% of £2.00) from HMRC, the balance (£2.00 - £0.40) is deducted from the employee’s net pay, so a total of £2.00 per week member’s contribution is paid into the pension and the employee has only paid £1.60 (for a £2.00 member’s contribution).

55. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Exception - workers with HMRC tax protection Where an employer has ‘reasonable grounds to believe’ (eg the worker shows them documentary evidence) that a worker has HMRC tax protected status for their pension savings (eg Primary, Enhanced or Fixed protection): the employer may choose not to automatically enrol/re-enrol them. The worker would still have the right to opt in/join.

56. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Exception - workers who have ceased active membership - i 1.If a worker is assessed and triggers automatic enrolment (for the first time) and they had previously contractually joined a qualifying pension scheme* (even if before the employer’s staging date), then: a.if they ceased membership 12 months or less before the assessment date – then the employer may choose whether or not to automatically enrol them (if the employer chooses not to automatically enrol them, the employer should leave them until the cyclical re-enrolment date); or b.if they ceased membership over 12 months before the assessment date – then they should not be automatically enrolled, but should be left until the cyclical re- enrolment date. 2.Workers who have previously been automatically enrolled and opted out or ceased membership of that scheme, should not be assessed until the cyclical re- enrolment date. This means an employer could choose not to assess any worker who has previously been an active member of a qualifying scheme - until the cyclical re-enrolment date. * or a pension scheme that would have been a qualifying scheme if the worker had been a jobholder when they ceased

57. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Exception - workers who have ceased active membership - ii On the cyclical re-enrolment date, the employer should identify workers: who previously contractually joined a qualifying pension scheme* (even if before the employer’s staging date) or who have previously been automatically enrolled into a qualifying pension scheme and either opted out or ceased membership of that scheme. These workers should be assessed on the cyclical re-enrolment date and, if an eligible jobholder, automatically re-enrolled - unless: they ceased membership/opted-out within 12 months (ie 12 months or less) of the cyclical re-enrolment date - in which case, the employer may choose whether or not to automatically re-enrol them. If the employer chooses not to automatically re-enrol them, the employer will have no duty to re-enrol them until the following cyclical re-enrolment date. * or a pension scheme that would have been a qualifying scheme if the worker had been a jobholder when they ceased

58. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Exception - workers with winding-up lump sums For a worker who has: i.ceased membership of a defined contribution (DC) scheme, and ii.been paid a Winding-Up Lump Sum (WULS), and iii.ceased employment, and iv.is subsequently re-employed by the same employer... then: if they have an automatic enrolment / re-enrolment date which falls up to 12 months after the payment of the WULS,  the employer may choose whether to enrol them or leave them until the next cyclical re-enrolment (and the re-employed worker does not have the right to opt in or join during the 12 months after a WULS payment) or, if they have an automatic enrolment date which falls more then 12 months after the payment of the WULS,  then they will have no duty to re-enrol them until the next cyclical re-enrolment date

59. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. DC self certification during phasing period † Subject to parliamentary approval Up to 5 April 2018 † 6 April 2018 to 5 April 2019 † From 6 April 2019 † Pensionable Salary (Basis of % Contributions) Set 1 (Tier 1) 2% Employer / 3% Total 3% Employer / 6% Total 4% Employer / 9% Total Scheme Definition (if >= basic pay from £1) Set 2 (Tier 2) 1% Employer / 2% Total 2% Employer / 5% Total 3% Employer / 8% Total  85% of Total Pay (scheme average) Set 3 (Tier 3) 1% Employer / 2% Total 2% Employer / 5% Total 3% Employer / 7% Total 100% of Total Pay For further details see the DWP guidance document: www.gov.uk/government/uploads/system/uploads/attachment_data/file/307083/money-purchase- schemes-guidance.pdf www.gov.uk/government/uploads/system/uploads/attachment_data/file/307083/money-purchase- schemes-guidance.pdf

60. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Using an existing contract-based pension scheme For a pension scheme to be a ‘qualifying scheme’: –it needs to be tax registered –it needs to satisfy the minimum criteria (ie be at or above the legal min employer and total contributions, eg 1% and 2% before 6 April 2018 † ) –and, for a contract-based pension, the employer and pension provider must have a signed agreement, where the employer commits to pay at least the legal minimum employer contributions, and –unless the employer agrees to pay at least the legal minimum total contribution (eg 2% before 6 April 2018 † ) - there must be a jobholder agreement for each active member (an agreement by the member to pay the difference between the employer contributions and the legal minimum total contribution). Additional criteria apply for an automatic enrolment pension (which must also be a qualifying scheme). † Subject to parliamentary approval

61. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Summary of deadlines Action/CommunicationDeadline Letter to workers who are not already in a qualifying pension scheme at staging 6 weeks after staging Joining window and enrolment notifications6 weeks from the assessment date (eg before midnight of Tuesday 12 May, if assessed Wednesday 1 April). Opt out window1 month from when both: the enrolment notification is given, and active membership is achieved. Postponement notices6 weeks from the day after the assessment date (eg before midnight Wednesday 13 May, if assessed on Wednesday 1 April). Complete declaration of compliance after staging5 months after staging Complete declaration of compliance after re-enrolment2 months after re-enrolment Normal contribution payments to scheme provider22 nd day of the month following the month of deduction (19 th day for non-electronic payments). New member contribution payments to scheme provider (for all deductions made in first 3 months of membership) 22 nd day (for electronic payments) of the first month, following a three month period starting the day active membership is effective (19 th day for non-electronic payments) eg enrolments 2 January to 1 February = e-payment deadline is 22 May.

62. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What to communicate to workers Non-eligible jobholders and entitled workers not already in a qualifying pension scheme must be provided with information* telling them about their right to opt in or join a pension scheme. For eligible jobholders being automatically enrolled (and non-eligible jobholders being enrolled after opting in) they must be provided* with: information about their enrolment what it means for them, including the contributions, and their right to opt out. Workers subject to a postponement need to be given key information* such as the length of the postponement period and their rights to opt in or join. * See Useful links for template letters

63. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Scenario A Assessment date on first day of PRP Yes UK worker aged 22 to SPA? No statutory duty to enrol No Staging date 31 st C 1 st RP0P0 C RP1P1 C RP2P2 31 st 30 th Yes Total QE paid in PRP > earnings trigger ? No Staging and a calendar month PRP Pay reference period runs from 1 st to last day of each month Assessment date is 1 April Total qualifying earnings may not be known until payroll cutoff or later. If the worker needs to be automatically enrolled: First deduction needs to made in payday P1 on 28 April opt out window may not start until after deduction taken Scheme contribution based on 100% of April pensionable pay. Monthly pay reference period (PRP) Key: C – Payroll cutoff R – Payroll run P – Payday Issue letter to worker and set up active membership opt out window could start 28 th Automatic enrolment triggered March April May

64. DM 2750193 V7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Scenario B Assessment date on 1st day of month Yes UK worker aged 22 to SPA? No statutory duty to enrol No 5 th C 6 th RP0P0 C RC RP2P2 5 th Yes Total QE paid in PRP > earnings trigger ? No Staging date Monthly pay reference period (PRP) Key: C – Payroll cutoff R – Payroll run P – Payday opt out window could start P1P1 Feb March April Issue letter to worker and set up active membership Automatic enrolment triggered 28 th 1 st Staging with a tax month PRP Pay reference period runs from 6 th day to 5 th day of each month Assessment date on 1 April (ie the staging date) is after the March payday P1 on 28 March Total qualifying earnings (in PRP 6 March to 5 April) assessed using old tax year earnings thresholds. If the worker needs to be automatically enrolled (from 1 April): First deduction needs to be made in the next payday P2 on 28 April opt out window could start before first deduction taken Contribution based on scheme rules (eg for a legal min scheme, based on 100% of April’s qualifying earnings).