1. Welcome Rachel Lee & David Golder & Molly

2. The 60 minute solution that advisers and employers need The Pensions Regulator – why employers need you and technology Coffee Put your questions to the regulator Case Studies – successes to date Objection handling – what employers might say Lunch The compliant project – getting the employers attention Salary exchange – your secret weapon Panel session – ask the experts about AE Summary & Close Agenda

3. Understand the employers obligations Understand why you are the answer The effective call to action Gain confidence from real case studies How to save the employer money Scope a successful AE project Understand your compliance position Recognise the journey from consultancy to self-serve Delivering a scalable solution to a mass market Understand how you can drive long term revenue from engaging in AE Ask your questions and remove barriers to action Objectives of the day

4. A brief reminder Auto Enrolment = the biggest advice opportunity in a generation! From 1 st April 2014 employers with 250 employees or less will Stage - 38,000 Stage in 2014 alone Employer compliance is compulsory and even big companies struggle By 2020, consumers will manage 85% of their relationships without talking to a human. (Source: Gartner Research) Future proof your client database! Auto Enrolment represents a one-time opportunity to establish an internet footprint in the workplace!

5. What employers will need to do Nominate a point of contact Know your staging date and develop a plan Assess your workforce Review your pension arrangements Communicate the changes to all your workers Automatically enrol your eligible jobholders Register with the regulator and keep records Contribute to your workers’ pensions

6. David Golder Client Proposition Director

7. Adviser self-serve Adviser Brand Sign-on & fact-find Pension application Employer Portal Config Employer Portal & Ongoing Compliance Payroll Pension Provider Application Process Business as usual

8. What does a Portal do? Complex becomes simple Automation -Assessment -Communications -Record keeping -Audit trail -Legislation changes automatic -Keeps employer compliant Standardises processes Reduces administration time and danger of non compliance IFA branding in the workplace for service and product promotion

9. Need to know checklist Pension scheme selection Employer name (legal & known as) Legal & organisational set-up eg holding or subsidiaries AE staging date Do you want to start ahead of staging? Company/charity registration number Estimation of no. of e’ees to be inc in pension plan Details of primary contact PAYE number Payroll provider/bureau contact details Confirmation who will be handling assessment ie payroll Confirmation who will be handling the communications

10. Your portal

17. Your business at the heart of the workplace.....

18. Your business at the heart of the workplace.... ABC Employer With established marketing permissions........ PAYROLL XYZ IFA Employee Portal Other benefits Protection Savings Mortgage Pension

19. Your brand permanently in the workplace * Promote your brand and services passively * Protect your clients * Grow with the workforce Keep control – expand to include wider benefits regime Automated pension application and acceptance Automatic legislation updates Employer, employee and adviser helplines Salary exchange as a default – save the employer money The future is here!

20. ConsultancySelf serve Complex employer needsSimplicity Take the expertSelf sufficient Set fee shareDetermine own value APRIL 17 APRIL 14 APRIL 15APRIL 16 APRIL 18 Adviser Self Serve Cons Support The future.....

21. Larger employers Complex cases Complex employer structure Multiple pension schemes Multiple PAYE references Multiple staging dates in a single group Adviser lacks confidence in the short term Consultancy support

22. Making it profitable Consultancy remuneration Employer set up fee £5950 / £5950 Employer monthly fee per e’ee £4.00 / £4.00 Adviser introducer payment £1500 / £1000 Adviser ongoing monthly payment £1.50 / £1.00

23. Adviser self serve Number of Employees Monthly Fee to Employer + VAT ANNUAL R E M U N E R A T I O N Non-MemberMember Up to 25£150 pm£950£1,200 26 – 50£250 pm£1,650£2,250 51 – 60£290 pm£1,890£2,610 61 – 75£335 pm£2,115£3,015 76 – 100£395 pm£2,224£3,318 101 – 125£470 pm£2,448£3,948 126 – 150£545 pm£2,778£4,578 151 – 200£670 pm£3,228£5,628 201 – 250£795 pm£3,678£6,678 Ongoing costs usually less than 1% of payroll costs Free – no employer establishment costs

24. Adding value to your business Making some modest assumptions of 6 schemes pa over 3 years Up to 25 employees - £7,200 pa x 3 = £21,600 Up to 50 employees - £13,500pa x 3 = £40,500 Growth in employee numbers will work to your advantage Income is non-regulated Income is passive and durable

25. Full launch planned for mid-May 2014 Webinar support to training on system Helpline access Ongoing document and information support... * Approaching prospects * Approaching centres of influence Access to data for prospecting One-off portal configuration & hosting fee £200 + vat What next.......

26. Just 30 schemes each with 50 employees will earn you: * £45,000 initial fees * £27,000 passive and recurring annual revenue * 1,500 captive client prospects TO BE ADDED IN Earnings You regulate what? The Pensions Regulator

27. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Neil Wilson Industry liaison manager April 2014 Automatic enrolment SimplyBiz The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.

28. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Topics What employers need to do Staging dates & overall timetable Who are your workers? Worker categories and the duties & 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 Registration

29. SIMPLYBIZ2014 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 eligible jobholders communicate to workers providing timely and appropriate information allow non-eligible jobholders to Opt-in and entitled workers to join manage Opt-outs within the Opt-out period and promptly refund contributions automatically re-enrol all eligible jobholders every three years Complete registration with the Regulator keep records, and maintain payments of contributions. The employee safeguards state that employers:  must not induce workers to Opt-out or cease membership of a scheme  must not indicate to a potential jobholder that their decision to Opt-out will affect the outcome of the recruitment process Overview of legal duties and safeguards

30. SIMPLYBIZ2014 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 eligible jobholders communicate to workers providing timely and appropriate information allow non-eligible jobholders to Opt-in and entitled workers to join manage Opt-outs within the Opt-out period and promptly refund contributions automatically re-enrol all eligible jobholders every three years Complete registration with the Regulator keep records, and maintain payments of contributions. The employee safeguards state that employers:  must not induce workers to Opt-out or cease membership of a scheme  must not indicate to a potential jobholder that their decision to Opt-out will affect the outcome of the recruitment process Overview of legal duties and safeguards

31. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What employers will need to do Nominate a point of contact Know your staging date and develop a plan Assess your workforce Review your pension arrangements Communicate the changes to all your workers Automatically enrol your eligible jobholders Register with the regulator and keep records Contribute to your workers’ pensions

32. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Planning tool: www.tpr.gov.uk/planner www.tpr.gov.uk/planner Planning timeline

33. SIMPLYBIZ2014 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. The staging date is based on the number of people in the employer’s PAYE scheme(s) as of 1 April 2012: –any subsequent changes in PAYE size or usage have no effect on the staging date. Generally, larger employers will stage before smaller ones: –new employers* will go last, from May 2017. Do not assume you know the number of people - use our tool

34. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging profile (volumes of employers)

35. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who are your workers? Employers will have duties for workers that are: aged 16 to 74 (inclusive), and who work or ordinarily work in the UK*, and it does not matter if they are full or part-time, permanent or temporary. There may be other people who will also be included: overseas workers, who are considered ordinarily working in the UK. Workers will include: employees, and people not employees, who are Personal Services workers. * the Channel Isles and the Isle of Man are outside the UK

36. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Are they a Personal Services worker? The employer needs to judge whether or not an individual with a contract to perform work or services personally is undertaking the work as part of their own business. Does the employer: have control over an individual’s method of work (eg hours worked)? provide any employee benefits? bear all the significant financial risks in carrying out the work (eg the worker is not financially responsible for their faulty work)? provide what is required for the individual to carry out the work (eg tools)?  If most or all of the above are true, then it would be reasonable to consider that they are not undertaking the work as part of their own business – and they are a personal services worker. The list above is not exhaustive and an employer must take into account all relevant considerations and make a reasonable judgement.

37. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is excluded? Exclusions from automatic enrolment duties include: some office-holders who are not considered workers, (eg non-executive director, trustee or elected member), but are only excluded for the activities they carry out as an office holder serving members of the military are exempt, and a company with only one employee, if that employee is also a director of that company (but only for the work they carry out for that company). 

38. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is Eddie a worker? Eddie is a self employed graphic designer. He works regularly for a company, Acme Workshops Ltd. His role is unique. He designs (and, if necessary, prints on his own equipment) all the flyers and magazine ads. He also designs and updates their website and forum. Eddie is very important to Acme Workshops’ marketing strategy. It is a nightmare when Eddie is too busy working for other customers, because his contract with Acme does not permit him to send a replacement. Eddie works unsupervised and, generally, he works from home, but sometimes he works in the offices of Acme Workshops. Eddie invoices Acme Workshops at the end of each campaign design and guarantees the quality of his material. Question 1 - Should Acme Workshops consider Eddie to be their worker?

39. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Eddie is a self employed graphic designer. He works regularly for a company, Acme Workshops Ltd. His role is unique. He designs (and, if necessary, prints on his own equipment) all the flyers and magazine ads. He also designs and updates their website and forum. Eddie is very important to Acme Workshops’ marketing strategy. It is a nightmare when Eddie is too busy working for other customers, because his contract with Acme does not permit him to send a replacement. Eddie works unsupervised and, generally, he works from home, but sometimes he works in the offices of Acme Workshops. Eddie invoices Acme Workshops at the end of each campaign design and guarantees the quality of his material. Eddie cannot reasonably be considered a worker, as: i) he is not an employee ii) he sometimes uses his own equipment iii) he works unsupervised and iv) he guarantees the quality of his work Is Eddie a worker? 

40. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is Georgina a worker? Georgina is a self employed IT professional who works full time for Acme Workshops Ltd. Georgina supports Acme Workshops’ in house payroll system and is very important to Acme Workshops and no one else has the expertise to do her work when she’s on holiday. Georgina works in Acme Workshops’ payroll team, alongside Acme Workshops’ own employees in their offices, but sometimes she is allowed to work from home. Georgina invoices Acme Workshops at the end of each month based on the number of days she has worked. Should Acme Workshops consider Georgina to be their worker?

41. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Georgina is a self employed IT professional who works full time for Acme Workshops Ltd. Georgina supports Acme Workshops’ in house payroll system and is very important to Acme Workshops and no one else has the expertise to do her work when she’s on holiday. Georgina works in Acme Workshops’ payroll team, alongside Acme Workshops’ own employees in their offices, but sometimes she is allowed to work from home. Georgina invoices Acme Workshops at the end of each month based on the number of days she has worked. Georgina can reasonably be considered a worker, because: she is supervised by Acme (needs permission to work at home) she works in their offices (uses their office equipment and supplies), and she is paid a daily rate (the completed work is not guaranteed) Is Georgina a worker? 

42. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is the worker’s employer? For a worker who works under a contract of employment (an employee) or who is a personal services worker directly contracted to perform work for the company who pays them:  the employer will be the legal entity named in the contract. Otherwise: for a worker who is supplied by an agent to a third party, to perform work personally, under a contract or arrangement between the agent and the third party, then: the agent or third party will be the agency worker’s employer, depending on which is responsible for paying the worker or, if it cannot be determined who is responsible for paying the worker, then whichever actually pays the worker will be considered as their employer.

43. SIMPLYBIZ2014 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 † paEntitled Worker Between £5,668 pa and up to £9,440 † pa Non-Eligible Jobholder More than £9,440 † pa Non-Eligible Jobholder Eligible Jobholder Non-Eligible Jobholder * SPA = State Pension Age ** Figures for 2014/15 Entitled workerUnder £5,772** pa Between £5,772 pa and up to £10,000** pa Non-eligible jobholder More than £10,000** pa Non-eligible jobholder Non-eligible jobholder Eligible jobholder Employer must automatically enrol eligible jobholders into an automatic enrolment pension scheme Can request to join a pension scheme Non-eligible jobholders can Opt-in to an automatic enrolment pension scheme Worker categories

44. DM1995429 v17G This presentation remains the property of The Pensions Regulator. The content of these slides should not be altered in any way Thresholds v Pay Reference Periods (PRP) 2014-15 † For other 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. Pay Reference Period † Lower Earnings Threshold (LET) Earnings trigger for automatic enrolment Upper Earnings Limit Annual£5,772 pa£10,000 pa£41,865.00 pa Bi-annual£2,886.00£4,998.00£20,933.00 1 quarter£1,443.00£2,499.00£10,467.00 1 month£481.00£833.00£3,489.00 4 weeks£444.00£768.00£3,221.00 Fortnight£222.00£384.00£1,611.00 1 week£111.00£192.00£805.00

45. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Assessing your workers Employers will need to assess all their workers on their staging date –unless they choose to use ‘postponement’ (described in later slides). All qualifying earnings must be used to assess a worker’s category (ie eligible jobholder, non-eligible jobholder or entitled worker). Qualifying earnings contains these pay elements: –salary/wages, commission, bonuses, overtime and statutory payments (excluding expenses). 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 workers who join them –assess some workers every pay period (see planning tool ‘ongoing responsibilities’) –assess some workers again every three years.

46. SIMPLYBIZ2014 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 you use to carry out: –assessment –enrolment –communications, and –calculation of pension contributions This is likely to require data held by payroll and HR systems. Choices: –Automate, including use of assessment software –Process manually

47. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Pension schemes Pension schemes can be either: –defined contribution (DC) eg ‘money purchase’ –defined benefit (DB) eg ‘final salary’ or ‘career average’. Qualifying schemes: –if an existing scheme is not a qualifying scheme, scheme members would need to be automatically enrolled into an automatic enrolment scheme if they are eligible jobholders –employers may want to change the contributions levels and/or scheme rules of their existing schemes to make them qualifying. –if qualifying earnings used for pension scheme rules, only qualifying earnings between £5,772*pa and £41,865*pa used for calculation of pension contributions (e.g. for 1 week Pay Reference Period, if QE <= £111.00 in PRP in 2014-15 then contribution = £0). * Pro-rata of annual amount used in each Pay Reference Period. These figures are for 2014-2015. The Secretary of State will review this amount each tax year.

48. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What pension schemes can be used? must be registered in the UK or EEA* must have no barrier to automatic enrolment must be a qualifying scheme Automatic enrolment scheme Qualifying scheme must be tax registered: and meet minimum criteria Workers already active members of a qualifying scheme do not need to be automatically enrolled Must be used for automatic enrolment and ‘Opt-ins’ Employers will need to contribute to the pension scheme *European Economic Area states Employers may also use a qualifying scheme or an automatic enrolment scheme for entitled workers Scheme for entitled workers scheme is registered Employers are not required to make an employer contribution

49. SIMPLYBIZ2014 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* DC scheme minimum contributions Oct 2018 Oct 2017 * % of qualifying earnings Feb 2018 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

50. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Using an existing pension scheme If you have an existing scheme, what can you use it for? Is it a qualifying scheme and does it satisfy the minimum criteria? –If it is not a qualifying scheme, it may be possible to change the scheme rules, so that active members would not need autoenrolment. –If it is a contract-based scheme, it is likely to need 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). Do you also want to use this scheme to automatically enrol your workers? –Your existing scheme provider may not allow it be made an automatic enrolment scheme (eg the scheme provider would need to provide Opt-out forms on request).

51. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Choosing a good quality scheme Scheme simplicity Workers should be able to understand the scheme (but if they don’t make any decisions they are still protected). Investment options Is the default investment strategy suitable? Managing Investments Know who is responsible for monitoring these default strategies. Value for money Are the costs and charges competitive and good value for the services provided Pension Provider The skills, knowledge and processes of those running your pension scheme are vital. Communications The scheme provider should regularly send good quality communications to members What makes a good quality scheme?

52. SIMPLYBIZ2014 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 workers –on the first day of employment for any new joiner after the staging date, and –on the date a worker meets the criteria to be an eligible jobholder. Only one postponement per worker 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 worker within six weeks and a day of the start of postponement. The worker 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 workers not eligible, monitor them each future pay period. Postponement does not change or delay the staging date

53. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Postponement – possible uses An employer could use postponement to smooth the process of: staging by automatically enrolling groups of workers at different points in the three month period. the automatic enrolment duty in respect of –workers with rare spikes in earnings –short-term workers who leave soon after starting work –workers who trigger automatic enrolment just before ceasing employment. fulfilling a number of the information duties for a worker in one go. aligning automatic enrolment with existing payroll processes to: –avoid contributions on part period earnings (start of a pay reference period) –maximise the amount of the opt out period that falls before the payroll run. facilitating contractual joining into a salary sacrifice arrangement.

54. SIMPLYBIZ2014 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. Non-eligible jobholders can Opt-in at any time. Eligible jobholders can Opt-in during postponement. On receipt of any request, 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).

55. SIMPLYBIZ2014 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 issues 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).

56. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Communicating to workers At staging, employers will need to communicate* to all their workers, (including existing pension scheme members). Employers need to inform workers of their rights and whether they are being automatically enrolled or postponed. The deadlines for communication are: –two months after staging; for existing scheme members, or –within six weeks; for all other communications (or within one month if the assessment date is before 1 March 2014). 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. * See our planning tool and ‘communicate to staff’

57. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What to communicate to workers On staging, workers already members of a qualifying pension scheme must be provided with information* about the scheme. Non-eligible jobholders and entitled workers 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

58. SIMPLYBIZ2014 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). * See planning tool and ‘keep records’

59. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Registration Employers must complete the registration* process to confirm they have complied. (* see planning tool ‘registration’) The deadlines are: –five months after the staging date and –two months after every re-enrolment date. Employers may receive a penalty fine if they do not complete registration on time. Employers will need to provide certain details, for example: –which pension schemes were used to comply with the duties, and –the number of eligible jobholders automatically enrolled into each scheme. All postponements applied at the staging date must have come to an end before registration can be completed. You can start the online process early and partially complete your declaration.

60. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Summary of deadlines (for deadlines ending from 1 April 2014) Action/CommunicationDeadline Letter to existing qualifying pension scheme members at staging 2 months after staging Letter to workers who are not already in a qualifying pension scheme at staging 6 weeks after staging Joining window, enrolment notifications and transitional period notices 6 weeks from the assessment date (eg before midnight of Monday 12 May, if assessed Tuesday 1 April). Opt-out window1 month - from the latest of when: the enrolment notification is issued, and active membership is achieved. Postponement notices6 weeks from the day after the assessment date (eg before midnight Tuesday 13 May, if assessed on Tuesday 1 April). Complete registration after staging5 months after staging Complete registration 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.

61. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Thank you ! Questions after the break

62. SIMPLYBIZ2014 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. COFFEE

63. Put your Questions to the Regulator

64. Certificate in Pensions Automatic Enrolment

65. Launched 1 October 2012 Based on regulatory requirements Maximise window of opportunity Qualification

66. History Pension provision in the uk Scheme designs Why NEST was established Technical issues Staging Assessment Types of workers Postponement Opt-in & opt-outs Regulation TPR/DWP/FCA Project Management Syllabus

67. Sixty multiple choice questions One hour examination Public and private sittings Examination

68. Newly launched for NMBA - CPAE now available as part of an apprenticeship ( 1 year programme) Who can take an apprenticeship? - Available to existing or new staff of all ages (graduates not allowed) Government funded training - Available to your business via Babington Business College – NMBA apprenticeship partner Incentives to SME businesses - £1500 incentive (£3000 in London) if you take on a new member of staff See leaflet for enquiry details – www.Babington.co.uk/financial-services-academy www.Babington.co.uk/financial-services-academy Apprenticeship Option

69. It’s that lovely man from Creative

70. About Creative Auto Enrolment 33 tasks mandated Employers not ready Take the headache away Work together Horses for courses Not a competition Complete end-to-end solution Including accepted terms with Scottish Widows 3 teams – sales, installation, helpline Automatic salary exchange January launch – it’s working!

71. Industry – Construction/Engineering SBiz Relationship – Accountancy connection of SBiz member No of Employees – 75 Staging Date – 1 st July 2014 SBiz member attended first round of seminars Follow up meeting with CAE Consultant SBiz member and CAE Consultant had joint meeting with Client Client signed up as a result of the support they would receive and the savings made using Salary Exchange (£23,000 over 6 years) Postponement SBiz member income £1,500 on implementation £1,350 per annum (75 x £1.50 x 12) Case studies

72. Recently staged client - Nails Inc Initial cost savings £3,650 per year Rising to £11,000 in 2017 Rising to £18,000 from 2018 onwards Estimate it will save around £40,000 in the first four years of implementation Postponement Case studies

73. Industry – Department Store SBiz Relationship – Existing client of SBiz member No of Employees – 57 (Only 14 eligible employees) Staging Date – 1 st July 2014 SBiz member attended first round of seminars Follow up meeting with CAE Consultant SBiz member met with client as had a good ongoing relationship Client has high staff turnover and many low earners/part time. Signed up due to ease of administration through the Create system. Salary exchange and postponement SBiz member income £1,500 on implementation £1,026 per annum (57 x £1.50 x 12) Case studies

74. Industry – Chain of Gymnasiums SBiz Relationship – Existing Client of SBiz member No of Employees – 110 Staging Date – 1 st May 2014 SBiz member attended first round of seminars Follow up discussions with CAE Consultant to fully understand the service SBiz member had meeting with Client Client signed up as a result of the comprehensive service offered by CAE Salary exchange and postponement SBiz member income £1,500 on implementation £1,980 per annum (110 x £1.50 x 12) Case studies

75. Industry – Coffee Shops SBiz Relationship – Existing client of SBiz member No of Employees – 140 Staging Date – 1 st May 2014 SBiz member attended first round of seminars Follow up meeting with CAE Consultant SBiz member and CAE Consultant had joint meeting with client Client signed up due to ease of administration through the Create system and Salary Exchange savings (£31,000 over 5 years) SBiz member income £1,500 on implementation £2,520 per annum (140 x £1.50 x 12) Case studies

76. “I don’t need you because.....” “My accountant will sort this out” “My workers won’t be interested in a pension scheme” “I can leave it until later, I have other priorities” “My HR manager will do all the AE communications” “The rules will change in future” “My staff are all zero hour contracts/ contract workers/seasonal” “I already have a pension scheme” “How difficult can it be to put in a pension scheme?” “My payroll provider will fix it”

77. The payroll challenge

79. AFTER LUNCH – THE COSTS TO BUSINESS AND HOW YOU RESPOND!! BACK IN 40 MINS LUNCH

80. What employers will need to do Nominate a point of contact Know your staging date and develop a plan Assess your workforce Review your pension arrangements Communicate the changes to all your workers Automatically enrol your eligible jobholders Register with the regulator and keep records Contribute to your workers’ pensions

81. The project – what does good look like? Establishing the relationship with the employer Consider how to enter this market place;- Financial promotions Local advertising Centres of influence Establish:- Scope of services Remuneration Use templates available via Simplybiz/Compliance First Possible referral opportunities to regulated business (individual advice)

82. Meet Molly Department Store - Staging Date – 1 st July 2014 Molly is the “payroll manager” 54 years old and a competent administrator Took on payroll 5 years ago because someone left. Dedicated employee retiring next year. No education or exams for 36 years. Her boss has received the letter and asked Molly to sort this out. This places Molly at the centre of the storm Client has high staff turnover and many low earners/part time – 57 employees

83. DO IT YOURSELF - TPR GUIDANCE 20 Pages 26 Pages 25 Pages 26 Pages 15 Pages 19 Pages 35 Pages 21 Pages 24 Pages 18 Pages 14 Pages 11 Pages 254 Pages And that excludes... updates, policy and strategy papers and the multitude of document templates! Do it yourself – TPR guidance

84. The project – what does good look like? Nominate a point of contact Is Molly:- A pensions expert? An AE legislation expert? Free for a 103 days? In need of a new career challenge?!

85. The project – what does good look like? Know your staging date & develop a plan Does Molly:- Know how to confirm the Staging Date? Know when to begin? Understand the key project phases? Have project management skills and experience? Know how to interpret legislation & the implications?

86. E Can Molly Assess the Workers? Workers All those who work in the UK under a contract of employment, i.e. employees, or those who have a contract to perform work personally and are not undertaking the work as part of their own business. E Eligible jobholders Aged 22 – SPA Earn above £9,440 MUST BE AUTO ENROLLED WITH EMPLOYER CONTRIBUTION Non-eligible jobholders 16-21 or SPA-74 Earn above £9,440 OR Aged 16-74 Earning above £5,668 but below £9,440 RIGHT TO OPT IN WITH EMPLOYER CONTRIBUTION Entitled Workers Aged16-74 Earn below £5,668 RIGHT TO JOIN Jobholders

87. Review your pension arrangements Does Molly know:- If we have a scheme? Whether it qualifies? How to speak pension providers language? How to find a pensions provider? The project – what does good look like?

88. Communicate the changes to all workers Does Molly Know what she must say? More importantly know what she mustn’t say? Know how to avoid coercion? Communicate objectively? Know how to present to staff? The project – what does good look like?

89. Automatically enrol your eligible job holders Does Molly Know who to enrol? Know when to enrol them? Know what to tell workers about opting out? Know what not to tell workers about opting out? Know when to re-enrol opt outs? Know how to answer e’ee questions? The project – what does good look like?

90. Register with regulator & keep records Does Molly:- Know where and how to register with the regulator? Know what to register? Know what records are required? Know how long they’re required for? Know how to deal with the regulator? The project – what does good look like?

91. Contribute to your workers pension Does Molly Understand contribution tiering? Know how to devise a default investment strategy? Know how to maintain contribution records? Understand retirement options? Understand how to mitigate the costs of the exercise? The project – what does good look like?

92. COST OF AE TO UK BUSINESS – DAILY TELEGRAPH

93. It’s that lovely man again from Creative

94. Harry ‘s tax reduced by: £2 Salary exchange – your secret weapon Employer deducts from Sally’s net pay: £8 Monthly Salary - £1,000 Employee Contribution – 1% Pension Provider adds in tax relief £2 Total invested in Sally’s pension plan: £10 Employee NIC saving £0 Harry reduces gross pay by: £10 Employer’s NI reduced by: £1.38 Harry’s NI reduced by: £1.20 Employer NIC saving £0 Harry’s net cost for same £10 investment: £6.80 Traditional Method Salary Exchange Simply Enrol powered by Creative Auto Enrolment

95. The impact of salary exchange AUTO ENROLMENT PROCESS CAN SAVE EMPLOYERS MONEY 201420152016201720182019 Annual Employer NIC Saving £2,875 pa £8,624 pa £14,374 pa Assumptions - 100 Eligible Employees Average Earnings £26,500 (NAE) Minimum Contributions QE Automatic Salary Exchange Simply Enrol powered by Creative Auto Enrolment

96. Opt outs and salary exchange Consider Postponement Simply Enrol powered by Creative Auto Enrolment

97. Q & A

98. Key messages of the day Ensure employers are compliant Deliver pension capacity Remove cost barriers to entry (<1% payroll costs) Acquire clients in scale Promote your services to a mass audience Take advantage of the best advice opportunity in a generation

99. Adding value to your business Making some modest assumptions of 6 schemes pa over 3 years Up to 25 employees - £7,200 pa x 3 = £21,600 Up to 50 employees - £13,500pa x 3 = £40,500 Growth in employee numbers will work to your advantage £200 + vat fully hosted workplace branded portals

100. What employers will need to do Nominate a point of contact Know your staging date and develop a plan Assess your workforce Review your pension arrangements Communicate the changes to all your workers Automatically enrol your eligible jobholders Register with the regulator and keep records Contribute to your workers’ pensions Put you in an advantageous position in the workplace Ensure you can profit

101. Contact all Molly’s!!!