1. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

2. Neil Esslemont Head of industry liaison Rebecca Woodley Industry liaison manager Sarah Webster Campaign adviser May 2016 The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. Automatic enrolment for business advisers

3. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Agenda Welcome and introductions Getting to know you Automatic enrolment: –Why was automatic enrolment introduced and what is the story so far? –What are the employer duties? Coffee and networking The challenges to come Support and information for employers and business advisers Your role as a business adviser: how you can help your clients Myth busting - testing your knowledge Q&As

4. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 1.Getting to know you - your role Which of the following best describes your role? A.Accountant B.Financial adviser C.Bookkeeper D.Payroll administrator E.Other

5. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 2.Professional body membership Are you a member of a professional body? A.Yes B.No

6. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 3.Your knowledge Which of the following best describes your knowledge of automatic enrolment? A.Little knowledge B.Some knowledge C.Good knowledge with some gaps D.Good knowledge E.Expert

7. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 4.Helping clients with automatic enrolment Have you started helping your clients through automatic enrolment? A.Yes B.No - but I plan to C.No - and I don’t plan to D.No - and I am undecided

8. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 5.How many clients want help How many of your small business clients do you think will need your help with automatic enrolment? A.4 or less B.5-20 C.21-40 D.41-60 E.61-90 F.90+

9. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 6.How much help do your clients want Which statement best describes the extent your typical, small business clients will be relying on you to help them? A.They will rely on you completely B.They will rely on you for some advice and some support C.They will rely on you for advice only D.They will be self reliant

10. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. 7.Your view Which of these statements concerns you the most: A.My clients will come to me at the last minute B.My clients will expect me to do everything for them C.My clients will expect me to do this for free D.I do not have sufficient knowledge to answer my client’s queries

11. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment An introduction Why automatic enrolment was introduced and the story so far. The employer duties.

12. 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.

13. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What is automatic enrolment? The law on workplace pensions has changed. Every employer with at least one member of staff has new duties, including putting those who meet certain criteria into a workplace pension scheme and contributing towards it. This is called automatic enrolment. –It’s called this because it’s automatic for workers - they don’t have to do anything to be enrolled into a pension scheme. –It’s not automatic for employers. They need to take steps to make sure staff are enrolled.

14. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The story so far More than 110,000 employers have automatically enrolled their staff Approximately 200,000 employers to stage in the first six months of 2016 There are over 6.1 million people enrolled into automatic enrolment pension schemes

15. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Challenges ahead (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 65% of employers yet to stage will have full automatic enrolment duties

16. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Breakdown of small and micro employers due to stage by size

17. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.

18. Language simplification The type of employer we are now engaging with has changed: –small (6 - 30 staff) and micro (1 - 5 staff) –around half will have just one or two members of staff –less financial knowledge and time poor –information needs to be concise and presented simply –these sources are more likely to be general often via press and media. New content for employers - the changes are: –buzzwords, jargon and acronyms avoided –legal terminology kept to a minimum and clearly explained when used –key terms and phrases replaced with simplified language.

19. 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

20. 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

21. 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

22. DM 2750193 v7A 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 in the UK *...... whether or not they are full time or part time, permanent or temporary. There may also be other people who are included: overseas workers, who are considered ordinarily working in the UK *. However, the truly self employed are not subject to automatic enrolment. * the Channel Isles and the Isle of Man are outside the UK

23. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is a director a worker? A director of a company is not classed as a worker, unless the individual works for the company under a contract of employment and there is at least one other person working for the company under a contract of employment A director who is not working under an employment contract is never classed as a worker The exemptions can apply to more than one director working for the same company. However, from 6 April 2016, if a director who is classed as a worker triggers automatic enrolment, the employer can choose whether or not to automatically enrol or re-enrol them (the director will have the right to opt in or join a pension).   

24. DM 2750193 v7A 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: directors not working under an employment contract; office-holders who are not considered workers (eg non-executive directors, trustees, elected members) - but they are only excluded for the activities they carry out as an office holder; the (truly) self-employed; 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). However, employers may choose whether or not to automatically enrol certain people who trigger automatic enrolment, including individuals who: are directors working under an employment contract (from 6 April 2016); are LLP partners, but are not ‘salaried members’ under HMRC tax rules (duties continue to apply in full to ‘salaried members’); are in their notice period; have previously ceased active membership of a qualifying pension; have HMRC tax protected status for their pension savings; have received a pension winding-up lump sum payment.

25. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is your client considered the ‘employer’? Where someone: is employed by your client (ie they have a contract of employment with your client), or is directly contracted to perform work for your client and your client pays the individual:  then your client is considered to be the ‘employer’ (ie the ‘employer’ is the legal entity named in the contract). Otherwise: if someone working for your client is employed by another company (perhaps because they work for an agency or their own limited company), your client will not be considered the employer and so will have no AE duties for them. if someone working for your client is paid for this work by another company or agency, that company will have the responsibility for any automatic enrolment duties, not your client.

26. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What if someone says they are self-employed? If someone working for your client says they are self-employed, your client should not assume that this person is exempt from automatic enrolment …  unless they are a director of your client’s company, as a director who is not working under an employment contract is exempt. Otherwise, your client should consider if the contract allows the individual to subcontract the work or freely substitute somebody else to do it …  if so, then your client will not have any automatic enrolment duties for the individual. However, if the individual (who is not director of that company) is normally expected to do the work themselves (unless they are unable to do it themselves, eg they are on holiday or sick) …  then they are considered to have a ‘personal contract’ to perform work or services and the employer will need to judge whether or not the individual is doing the work as part of their own business.

27. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is someone working as part of their own business? If someone (who is not a director) considers themselves self-employed and has a ‘personal contract’: The employer will need to consider whether the individual is working as part of their own business or not. There are a number of factors that will help decide this. Does the employer: –have control of the hours they work? –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)? –consider the individual to be part of their own organisation? –provide what is required for the individual to carry out the work (eg tools)?  If most or all of the above are true, it would be reasonable to consider that the individual is not undertaking the work as part of their own business and so are subject to automatic enrolment. Otherwise, they are truly self-employed and are exempt.

28. TPRDM 2750193 V7B These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. To tell us you are not an employer If an employer does not believe they are an employer because: –it is a sole director company, with no other staff –it is a company with more than one director, where no more than one director has an employment contract –the company has ceased trading –the company has gone into liquidation or has been dissolved Tell us at  https://automation.thepensionsregulator.gov.uk/notanemployer https://automation.thepensionsregulator.gov.uk/notanemployer The tool is not for employers who: –have no staff to enrol on their staging date, or –for companies in administration or in non-terminal insolvency

29. DM3211503 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Figures for 2016-2017 Assessment of workers Monthly gross earnings Age Weekly gross earnings From 16-21 From 22 to SPA* *State Pension Age From SPA to 74 £486 and below Has a right to join a pension scheme If they ask you to, you must provide a pension scheme for them but you don’t have to pay contributions £112 and below Over £486 up to £833 Has a right to opt in If they ask to be put into a pension scheme, you must put them in your automatic enrolment pension scheme Over £112 up to £192 Over £833 Has a right to opt in Automatically enrol Has a right to opt in Over £192

30. DM 2750193 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.

31. DM 2750193 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’).

32. 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

33. 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.

34. DM 2750193 v7A 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 Payroll software can help a client carry out: –the assessment –enrolment –communications, and –calculation of pension contributions  If their payroll software does not do all of the above, non-payroll software or services could be used. Some pension scheme providers offer some or all of these services. Clients should plan to test these systems before they go live. Employers have often found many errors in their staff records - so these should be checked for accuracy before staging.

35. 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* DC 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

36. DM 2750193 v7A 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 OR another definition (eg basic pay). When 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). If pensionable earnings are not based on qualifying earnings, the employer can self certify if the scheme meets certain minimum criteria: –‘Set 1’ - if basic pay from £1 is pensionable, or –‘Set 2’ - if at least 85% of total pay (scheme average) is pensionable, or –‘Set 3’ - if 100% of total pay is pensionable. * Pro-rata of annual amount used in each Pay Reference Period. These figures are for 2016-17. The Secretary of State will review this amount each tax year.

37. 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

38. DM 2750193 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 Period (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.

39. DM 2750193 v4Q These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Asking to join a pension scheme 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).

40. DM 2750193 v4Q These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Asking to leave a pension scheme (opt 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).

41. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Communicating to staff - information requirements 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

42. 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 whistle-blower alert).

43. 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 2013 may choose any day between 1 July and 31 Dec 2016). 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 applicable (eg if in notice period or have tax protection)

44. 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.

45. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment Challenges, your role and our support The story so far and the challenges to come. Support and information for employers and business advisers. Your role as a business adviser: how you can help your clients. Myth busting - testing your knowledge. Q&As

46. This presentation remains the property of The Pensions Regulator and should not be reproduced without express permission Are small and micro employers getting the message? Over 50% of micro employers staging this year have not started making plans for automatic enrolment. Those in early stages of AE preparation expect it to take longest, while those yet to start expect it to take the least time. Many will leave their preparations to the last minute. You may wish to proactively contact your clients to find out when their duties start.

47. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Support for business advisers on our website

48. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Support for employers: duties checker

49. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Duties checker: before you begin

50. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tell us if you run a business

51. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Is your business still active?

52. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do you employ anyone?

53. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. See your staging date 1

54. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Your staging date

55. DM 3211374 v1 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?

56. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Do they earn more than £833 a month?

57. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Employer classification

58. DM 3211374 v1 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. I am an employer who has to provide a pension

59. DM 3211374 v1 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

60. DM 3199358 v1A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Our tailored communications approach Employer with eligible jobholders Employer with no eligible jobholders Staging date -12 -9 -6 -3 +3 +5 Months Letter Email

61. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What services will you offer your clients? Decide what services you will offer and what services you will not offer - and inform your clients. Checking your clients’ start (staging) date Being a point of contact Checking who to put into a pension scheme Creating your clients’ action plan and working out your clients’ costs Checking records and payroll processes Choosing a pension Assessing and enrolling staff Writing to your clients’ staff Completing the declaration of compliance Explaining your clients’ ongoing duties

62. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Challenges around choosing a pension Do your clients know: –if their existing pension scheme meets the automatic enrolment criteria –where to start looking when choosing a pension scheme –what pension scheme features to look out for –they should check their payroll software works with their pension provider –that it’s a good idea do a test payroll run before their staging date?

63. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The FCA regulations and choosing a pension Employers have the responsibility to choose a pension (or pensions) for automatic enrolment. Investment advice to an employer (in their capacity as an employer) is not a regulated activity. Investment advice to an individual is regulated and should only be provided if an adviser has the appropriate Financial Conduct Authority authorisation. It may not always be easy to tell whether an employer is seeking advice as an employer or as an individual (eg where the client might join the pension themselves). Consider the ethical standards set by your professional body and the scope of your professional indemnity insurance. You may like to specify in the letter of engagement that any advice to an employer is provided to them in their capacity as an employer and not as an individual.

64. DM 2750193 v7A 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

65. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Can clients use an existing pension scheme? If clients have an existing scheme, it may not be suitable for automatic enrolment. 1.To be a qualifying scheme: –the contributions due must be at or above the minimum criteria –if it is a personal or GPP contract-based scheme, it is likely to need a jobholder agreement for each active member. If it is not a qualifying scheme, it may be possible to change the scheme rules to make it qualifying. Active members of a pension which is not qualifying would need to be assessed and, if eligible, automatically enrolled into another pension. 2.If they want to use a qualifying scheme to automatically enrol their workers: –the pension must have no barrier to automatic enrolment (eg default fund). The existing pension provider may not allow it to be made a qualifying scheme or an automatic enrolment scheme - check with the pension provider.

66. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Finding a new pension scheme and pension provider The government scheme –National Employment Savings Trust (NEST) is a pension scheme that all employers can use to meet their duties. Schemes with master trust assurance –the master trust assurance framework provides an independent review against an industry-wide benchmark of quality –these features in our DC code represent the standards of governance and administration that we expect trustees to attain –we list those schemes that have said they’re open to all small employers looking for a scheme provider for automatic enrolment Schemes listed by other industry bodies –Pensions and Lifetime Savings Association (PLSA) Pension Quality Mark –The Association of British Insurers (ABI) list of GPP providers

67. DM 2750193 v7A These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. It is the employer’s responsibility to choose a pension scheme for their workers. Employers should consider what features are important for their workers, for example: –charges (there is an annual 0.75% charge cap on the default fund) –choice of funds other than the default strategy (eg Sharia,ethical) –options at retirement and/or from age 55 (eg drawdown options) –whether they provide ‘one pot per member’ and rules on transfers –how tax relief is applied (eg through payroll or by the pension provider) –online member services –member communications (may be available in multiple languages) For help on how to select a good qualifying pension, please see: www.tpr.gov.uk/choosing-a-pension-scheme.aspx Choosing a new pension - factors to consider

68. DM 2750193 v7A 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

69. DM 2750193 v7A 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.

70. DM 2750193 v7A 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.

71. DM 2750193 v7A 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).

72. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Supporting clients in their choice of pension You can support your clients in their selection of a pension by: providing factual information recommending a specific pension for automatic enrolment referring an employer client to another adviser or a pension provider selection tool. The ultimate responsibility remains with the employer. However, you might wish to highlight to your client: the importance of choosing a pension that factors in the benefits their staff will receive (eg whether it gives value for money and how well the pension is managed) they could document their decision making process, so they have a record an employer without any staff who need to be automatically enrolled, only needs to set up a pension if a staff member asks to join a pension scheme or becomes eligible.

73. DM 2777032 v8S These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Some of our powers used (to 31 March 2016): –69 information notices –24 statutory inspection notices –7,834 compliance notices –409 unpaid contribution notices –2,234 fixed penalty notices –127 escalating penalty notices More than 95% of the first small employers required to put their staff into a workplace pension have now complied with the law. As expected, a number needed the additional nudge of enforcement action. Around 40% of all notices issued to date were in the first quarter of 2016. Just over 800 fixed penalty notices were issued between the beginning of January and the end of March this year. Use of powers 7,456 cases closed by 31 March 2016

74. DM 2777032 v8X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. We began County Court proceedings against an employer in the licensed restaurant sector who had not paid their £400 fixed penalty fine:  They went on to complete their declaration of compliance, but did not pay the fine... ... even after sending a number of reminders and giving them time to pay.  So we made an application to the County Court to begin proceedings... ... they paid before the hearing date, but still had to pay court fees. We have the power to take an employer to court to recover the debt if they fail to pay the original fine. Case study i - County Court proceedings

75. DM 2777032 v8X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Swindon Town Football Company Ltd (STFC) was the first employer to be issued an Escalating Penalty Notice.  The employer failed to complete their declaration of compliance and failed to put eligible staff into a scheme, pay contributions or write to staff explaining how automatic enrolment affected them.  We gave guidance to STFC on how they could comply with their duties within certain timescales. They failed to do this and daily escalating fines of £2,500 were imposed totalling £22,500 and a fixed penalty notice of £400. They also had to pay £13,613.39 in outstanding pension contributions.  Employers should not ignore their duties. TPR will work with you to help you comply, but we will use our powers where appropriate. Deliberate non- compliance will not be tolerated.  If you have received a fine, you will still have to pay it even if you then go on to become compliant.  www.tpr.gov.uk/regulate-and-enforce/section-89-reports.aspx www.tpr.gov.uk/regulate-and-enforce/section-89-reports.aspx Case study ii - Swindon Town Football Club fined £22,900

76. DM 2777032 v8X These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tell the Regulator about the breach. TPR’s approach is an employer: should take reasonable steps to put the worker back in the position they would have been in if compliance had occurred on time, and should not profit from their mistake If this is within 3 months of the mistake the employer should: enrol them, backdated to the original date, and ensure backdated employer pension contributions are paid, and give the employee the option to pay their backdated contributions (over a reasonable timeframe). If TPR decides to take formal action against the employer and the worker should have been enrolled more than 3 months ago, TPR has the power to: require the employer to pay both their own and employee contributions, and require interest to be added to outstanding contributions What if an employer makes a mistake?

77. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. Automatic enrolment Myth busting and testing your knowledge

78. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Finding a staging date 1.If your client was not an employer on the 1 April 2012 - and first started to pay staff through PAYE after 1 April 2012, how can they find out their staging date? A.use the duties checker B.search the internet for a staging date table C.it will be 1 April 2017

79. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Finding a staging date 1.If your client was not an employer on the 1 April 2012 - and first started to pay staff through PAYE after 1 April 2012, how can they find out their staging date? A.use the duties checker B.search the internet for a staging date table C.it will be 1 April 2017 

80. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates 2.A client has two PAYE references and we have sent two letters giving two separate staging dates, which should they use? A.the earlier date B.the later date C.the date applying to the PAYE with the largest number of workers D.both dates - with each date applying to the staff on each PAYE

81. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates 2.A client has two PAYE references and we have sent two letters giving two separate staging dates, which should they use? A.the earlier date B.the later date C.the date applying to the PAYE with the largest number of workers D.both dates - with each date applying to the staff on each PAYE 

82. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Postponing a staging date 3.Your client would like to delay their staging date and defer their duties by 3 months. Which one of the following statements is true? A.they should inform The Pensions Regulator as soon as possible and agree a new date B.they cannot delay their staging date

83. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Postponing a staging date 3.Your client would like to delay their staging date and defer their duties by 3 months. Which one of the following statements is true? A.they should inform The Pensions Regulator as soon as possible and agree a new date B.they cannot delay their staging date An employer can use postponement, which delays the need to assess or automatically enrol a member of staff for up to 3 months, but: the staging date stays the same the declaration of compliance date remains the same they must notify any postponed worker within six weeks of the start of postponement during postponement the worker has the right to opt in or join a pension there is no need to inform us, but records should be kept. 

84. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Missed staging date 4.Your client has missed their staging date by 7 weeks and has not yet taken any action to comply with their automatic enrolment duties. Which statement is right? A.they should inform The Pensions Regulator as soon as possible and take immediate steps to comply with the law B.they could use postponement C.they will need to pay an immediate £400 fine

85. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Missed staging date 4.Your client has missed their staging date by 7 weeks and has not yet taken any action to comply with their automatic enrolment duties. Which statement is right? A.they should inform The Pensions Regulator as soon as possible and take immediate steps to comply with the law B.they could use postponement C.they will need to pay an immediate £400 fine 

86. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Qualifying earnings 5.Which of the following is NOT a qualifying earning? A.maternity pay B.commission C.dividends D.overtime E.none of the above

87. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Qualifying earnings 5.Which of the following is NOT a qualifying earning? A.maternity pay B.commission C.dividends D.overtime E.none of the above 

88. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Duties 6.If your client has no one to automatically enrol, which step can they leave out (until they do have someone to automatically enrol)? A.write to staff B.complete a declaration of compliance C.set up a pension scheme D.none of the above

89. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Duties 6.If your client has no one to automatically enrol, which step can they leave out (until they do have someone to automatically enrol)? A.write to staff B.complete a declaration of compliance C.set up a pension scheme D.none of the above 

90. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is exempt 7.An employer can choose whether or not to automatically enrol certain individuals. However, which of these people are exempt and should never be automatically enrolled? A.those with HMRC tax protected status for their pension savings B.directors working under an employment contract, where there is more than one employee C.directors not working under an employment contract D.LLP partners who are not ‘salaried members’ under HMRC tax rules E.those in their notice period F.none of the above

91. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who is exempt 7.An employer can choose whether or not to automatically enrol certain individuals. However, which of these people are exempt and should never be automatically enrolled? A.those with HMRC tax protected status for their pension savings B.directors working under an employment contract, where there is more than one employee C.directors not working under an employment contract D.LLP partners who are not ‘salaried members’ under HMRC tax rules E.those in their notice period F.none of the above 

92. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Declaration of compliance 8.Which of these companies must complete a declaration of compliance? A.a company with no staff, other than its directors, where two or more of them have a contract of employment B.a company with no staff, other than its directors, where none of them have a contract of employment C.a company with only one member of staff, who is also a director of the company D.none of the above

93. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Declaration of compliance 8.Which of these companies must complete a declaration of compliance? A.a company with no staff, other than its directors, where two or more of them have a contract of employment B.a company with no staff, other than its directors, where none of them have a contract of employment C.a company with only one member of staff, who is also a director of the company D.none of the above 

94. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Not an employer 9.Your client is not an employer, but has received a letter with a staging date from The Pensions Regulator. What action should they take? A.they need take no action, as they have no duties B.they should ring or email The Pensions Regulator’s help desk C.they should tell us they’re not an employer, as soon as possible, by using our online form D.they should complete a declaration of compliance highlighting this information

95. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Not an employer 9.Your client is not an employer, but has received a letter with a staging date from The Pensions Regulator. What action should they take? A.they need take no action, as they have no duties B.they should ring or email The Pensions Regulator’s help desk C.they should tell us they’re not an employer, as soon as possible, by using our online form D.they should complete a declaration of compliance highlighting this information 

96. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. To tell us you are not an employer If an employer does not believe they are an employer because: –it is a sole director company, with no other staff –it is a company with more than one director, where no more than one director has an employment contract –the company has ceased trading –the company has gone into liquidation or has been dissolved  https://automation.thepensionsregulator.gov.uk/notanemployer https://automation.thepensionsregulator.gov.uk/notanemployer The tool is not for employers who: –have no staff to enrol on their staging date, or –for companies in administration or in non-terminal insolvency

97. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tax relief 10. You operate the payroll for a client who has chosen a pension scheme which uses Relief at source. For every £1.00 of member’s pension contribution, what should the payroll deduct from their pay? A.£1.00 from their net pay (after tax has been deducted) B.£1.00 from their gross pay (no tax is deducted on the contribution) C.80p from their net pay (after tax has been deducted) D.80p from their gross pay (no tax is deducted on the contribution) E.none of the above.

98. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tax relief 10. You operate the payroll for a client who has chosen a pension scheme which uses Relief at source. For every £1.00 of member’s pension contribution, what should the payroll deduct from their pay? A.£1.00 from their net pay (after tax has been deducted) B.£1.00 from their gross pay (no tax is deducted on the contribution) C.80p from their net pay (after tax has been deducted) D.80p from their gross pay (no tax is deducted on the contribution) E.none of the above. 

99. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Eddie is not an employee, but is he subject to AE? Eddie is a self employed graphic designer who regularly works for Acme Workshops Ltd, but works for other clients too. Eddie’s contract with Acme does not permit him to send a replacement. Eddie designs all of Acme’s flyers and magazine ads and also designs and updates their website. Eddie generally works from home, but sometimes he works in Acme’s offices. He uses his own equipment to print the flyers and if something goes wrong with the printing he produces a replacement batch at his own expense. When he is given a project to do, Acme set a deadline, but leave it up to him to plan when, where and how the work will be done. Eddie invoices Acme at the end of each project that he works on. 11. Should Acme Workshops consider Eddie to be subject to AE?

100. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Eddie is not an employee, but is he subject to AE? Eddie is a self employed graphic designer who regularly works for Acme Workshops Ltd, but works for other clients too. Eddie’s contract with Acme does not permit him to send a replacement. Eddie designs all of Acme’s flyers and magazine ads and also designs and updates their website. Eddie generally works from home, but sometimes he works in Acme’s offices. He uses his own equipment to print the flyers and if something goes wrong with the printing he produces a replacement batch at his own expense. When he is given a project to do, Acme set a deadline, but leave it up to him to plan when, where and how the work will be done. Eddie invoices Acme at the end of each project that he works on. Eddie cannot reasonably be considered a worker, so is not subject to AE, as: i) he markets his services to other clients, ii) he uses his own equipment iii) he works unsupervised and iv) he guarantees the quality of his work. 

101. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Karen is a self employed IT professional who works full time for Acme Workshops Ltd, supporting their in house payroll system. She works in a team alongside Acme’s own employees and, when she meets external contacts, uses business cards identifying her as a member of Acme’s staff. Although Karen usually works in Acme’s offices, she can work from home if she gets permission in advance. Whether she’s in the office or at home she uses a laptop and software provided by Acme. Karen is paid at the end of each month based on the number of days she has worked. She bears no financial responsibility if she misses a deadline or makes a mistake in her work. 12. Should Acme Workshops consider Karen to be subject to AE? Karen is not an employee, but is she subject to AE?

102. DM3184696 v11C These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Karen is a self employed IT professional who works full time for Acme Workshops Ltd, supporting their in house payroll system. She works in a team alongside Acme’s own employees and, when she meets external contacts, uses business cards identifying her as a member of Acme’s staff. Although Karen usually works in Acme’s offices, she can work from home if she gets permission in advance. Whether she’s in the office or at home she uses a laptop and software provided by Acme. Karen is paid at the end of each month based on the number of days she has worked. She bears no financial responsibility if she misses a deadline or makes a mistake in her work. Karen can reasonably be considered a worker and subject to AE, because: i) she is integrated into Acme’s operation ii) she is subject to a degree of control by Acme iii) she uses their equipment and supplies, and iv) she does not guarantee her work. Karen is not an employee, but is she subject to AE? 

103. DM 2777032 v8M These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links Step by step guide for employers – www.tpr.gov.uk/en/employers www.tpr.gov.uk/en/employers Online guide for business advisers – www.tpr.gov.uk/business-advisers www.tpr.gov.uk/business-advisers Staging dates – www.tpr.gov.uk/checking-your-clients-staging-dates www.tpr.gov.uk/checking-your-clients-staging-dates Bringing staging date forward – www.tpr.gov.uk/employers/bringing-staging-date- forward.aspx www.tpr.gov.uk/employers/bringing-staging-date- forward.aspx Who to put into a pension scheme – www.tpr.gov.uk/checking-who-to-enrol www.tpr.gov.uk/checking-who-to-enrol Not an employer? – https://automation.tpr.gov.uk/notanemployerhttps://automation.tpr.gov.uk/notanemployer Choosing a pension scheme – www.tpr.gov.uk/choosing-a-pension-scheme www.tpr.gov.uk/choosing-a-pension-scheme Declaration of compliance – www.tpr.gov.uk/completing-the-declaration-of-compliance www.tpr.gov.uk/completing-the-declaration-of-compliance Declaration of compliance checklist – www.tpr.gov.uk/docs/automatic-enrolment- online-registration-checklist.pdf www.tpr.gov.uk/docs/automatic-enrolment- online-registration-checklist.pdf Your role – www.tpr.gov.uk/what-you-need-to-do-and-by-when www.tpr.gov.uk/what-you-need-to-do-and-by-when News by email – https://forms.thepensionsregulator.gov.uk/subscribe https://forms.thepensionsregulator.gov.uk/subscribe

104. DM 2777032 v8M These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links Nominate a contact – https://automation.thepensionsregulator.gov.uk/Nomination https://automation.thepensionsregulator.gov.uk/Nomination State Pension Age calculator – www.gov.uk/calculate-state-pension www.gov.uk/calculate-state-pension Find a letter code online – https://automation.thepensionsregulator.gov.uk/LetterCode https://automation.thepensionsregulator.gov.uk/LetterCode To register for the automatic enrolment (‘3 coins’) logo - under registration, choose “I require pension automatic enrolment files” – https://communicationcentre.dwp.gov.uk/dwp/index.php https://communicationcentre.dwp.gov.uk/dwp/index.php Bulk declaration of compliance (file upload) – https://www.autoenrol.tpr.gov.uk/ https://www.autoenrol.tpr.gov.uk/ Description of qualifying earnings in detailed Guidance 3 paragraph 95 – www.tpr.gov.uk/doc-library/automatic-enrolment-detailed-guidance.aspx#s11496 www.tpr.gov.uk/doc-library/automatic-enrolment-detailed-guidance.aspx#s11496 Automatic enrolment earnings threshold – www.tpr.gov.uk/automatic-enrolment- earnings-threshold.aspx www.tpr.gov.uk/automatic-enrolment- earnings-threshold.aspx

105. DM 2777032 v8M These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Additional slides

106. DM 2750193 v7D These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Type of work contract between the individual and this company Employer duties apply to this individual? Sole director/employee - Peter (who is a director of this company with an employment contract) X Additional director - Sarah (not on an employment contract) X Additional director - George (not on an employment contract) X Additional director - Linda (has a written contract of employment) √ (Peter* and Linda) Example of sole employee/director exemption * As there are two directors with contracts of employment, duties apply to both Peter and Linda. This would be the same even if Linda was not a director and was just an employee - Peter’s exemption would stop when she joined. However, from 6 April 2016, an employer can choose whether or not to automatically enrol/re-enrol any directors who become eligible.

107. DM 2750193 v4Y These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. A summary of what employers need to do 1.You need to assess your staff member’s age and earnings to find out: –who you need to automatically enrol –who may opt in –who may join 2.Put your staff into the pension scheme you are providing for them from your staging date. 3.Give all staff the necessary information which explains how automatic enrolment affects them and what their individual entitlements are. 4.You should calculate and pay employer contributions from the staging date for staff in your employment at that time (or from the enrolment date for workers who started after the staging date). 5.You must complete your declaration of compliance to advise us you have met your automatic enrolment duties. This is a legal requirement and can be done online at: https://www.autoenrol.tpr.gov.uk.https://www.autoenrol.tpr.gov.uk

108. DM3030908 v3B These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. DB schemes - quality requirements As contracting out has been abolished, new quality requirements for defined benefit (DB) schemes are needed. In addition to the existing test scheme standard a new alternative is set out in the regulations. These new requirements are contribution rate tests, based on the cost of providing benefits for members. The basic test is 10% of qualifying earnings (QE), but DB schemes do not use QE as their definition of pensionable pay, so there are four alternatives: 1.11% of pensionable earnings where pensionable earnings is at least basic pay 2.10% of basic pay if basic pay is at least 85% of total earnings on average 3.9% of total pay if total pay is pensionable 4.13% of basic pay above the national insurance lower earnings limit or basic state pension (for cover schemes which have a state pension offset)

109. DM3030908 v3B These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. DB schemes - quality requirements Defined Benefits (DB) guidance on alternative quality requirements www.tpr.gov.uk/docs/pensions-reform-pension-schemes-appendix-c.pdf www.thepensionsregulator.gov.uk/docs/detailed-guidance-4.pdf

110. DM 2750193 v4Y 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

111. DM 2750193 v4Y 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).