1. Auto Enrolment Workshop Paul Mitchell Director, Corporate Solutions 21 st July 2016

2. On the agenda 1. About Wren Sterling 2. Auto Enrolment: a. The Facts: What you have to do and when you have to do it b. What you need to consider 3. Wren Sterling Mastertrust  Why?  Overview  Key players  Website 4. Costs

3. About Wren Sterling? Previously Towergate Financial, part of the Towergate Group MBO in March 2015 Independent Financial Advisers Specialists in corporate and private client financial planning 7 UK offices c.90 advisers plus support staff

4. The Facts Staging Dates Auto enrolment responsibilities Minimum contribution levels Employer admin duties

5. The headlines Every UK employer must: –Offer their employees entry into a qualifying workplace pension scheme –Auto enrol the majority of their employees into the pension scheme –Pay a minimum level of contributions –But there is so much more…..

6. But some are exempt… There is only one director and there are no other staff working for the company The only people working for the company are directors and none of them has an employment contract The only people working for the company are directors and only one of them has an employment contract http://www.thepensionsregulator.gov.uk/en/employers/duties- checker/outcomes/what-if-i-dont-have-any-staff/http://www.thepensionsregulator.gov.uk/en/employers/duties- checker/outcomes/what-if-i-dont-have-any-staff/

7. Staging date This is the date an employer must comply with all requirements under this legislation For confirmation on your Staging Date, go to http://www.thepensionsregulator.gov.uk/employers/tools/staging- date.aspx and insert your Employer Reference Number (for PAYE purposes)

8. 3 different types of workers Eligible jobholders Age 22 to state pension age (SPA) Normally work in the UK Earning £10,000 pa (£833 per month/£192 per week) or more Eligible jobholders must be automatically enrolled Non-eligible jobholders Aged from 16-21 or from state pension age to 74 Working in the UK Earning £10,000 per year or more OR Aged 22 to SPA Earning £5,824 pa (£485 per month/£112 per week) or more but less than £10,000 Non-eligible jobholders do not need to be automatically enrolled, but can request to do so, and the employer must pay contributions for them Entitled workers Are aged above 16 and below 75 Work in the UK Earn below £5,824 pa Entitled workers have a right to join the scheme, but the employer does not have to make a contribution for them

9. Postponement The first assessment for auto enrolment can be deferred for up to 3 months from the Staging Date Can be applied to employees at Staging Date and beyond Employers must notify all existing workers within 6 weeks of the Staging Date, or their date of joining company (if thereafter) that this will happen Workers can elect to join during the waiting period

10. Postponement Can be applied on; –Staging Date –New joiners post Staging –Variable earners

11. Employee communications Statutory communications –Must be issued within a certain timeframe Staging Date/ongoing communications Postponement notice Enrolment notice Non-statutory communications –Keeping employees in the picture

12. Opting out guidelines Employees Cannot opt out in advance or during waiting period Have one month to opt out after being enrolled Will need to complete online or paper form Will be entitled to a refund of any contributions deducted

13. Opting out guidelines Employers Must not issue opt out forms Must not encourage opting out/discourage membership of the scheme Must not offer advice At each third anniversary of the Staging Date, all eligible jobholders who opted out must be re-enrolled into the scheme (unless opted out in the previous 12 months)

14. Opting out taboos Pension Regulator has said that employers must not: Induce your workers to opt out or cease membership of the qualifying pension scheme Do or fail to do something which results in the worker ceasing to be in active membership whilst still employed by the employer Indicate during a recruitment process that a worker’s decision to opt out of automatic enrolment will affect the outcome The Pensions Regulator has established a whistle-blowing facility, through which confidential reports of suspected non- compliance can be made.

15. Banded Earnings Basis Between £5,824 and £43,000 Min Conts 8% Min Er Conts 3% Ee Conts Up to 5% Definition of Earnings n/a Certification Required No Minimum contribution levels: banded earnings

16. Banded Earnings Pensionable earnings Basis Between £5,824 and £43,000 Based on earnings from first £1 Min Conts 8%9%8%7% Min Er Conts 3%4%3% Ee Conts Up to 5%up to 5% up to 4% Definition of Earnings n/a Based on basic salary Pensionable earnings must be at least 85% of total P60 earnings Certification Required NoYes Minimum contribution levels

17. * Employee contributions include tax relief From Staging Date up to 5 April 2018 6 April 2018 to 5 April 2019 6 April 2019 onwards Employer 1%2%3% Employee 1%3%5% Phasing of contributions: banded earnings

18. Phasing of contributions: pensionable earnings Basis From Staging Date up to 5 April 2018 6 April 2018 to 5 April 2019 6 April 2019 onwards 9% EmployerAt least 2%At least 3%At least 4% EmployeeUp to 1%Up to 3%Up to 5% 8% EmployerAt least 1%At least 2%At least 3% EmployeeUp to 1%Up to 3%Up to 5% 7% EmployerAt least 1%At least 2%At least 3% EmployeeUp to 1%Up to 3%Up to 4% * Employee contributions include tax relief

19. You need to ensure you offer your employees a qualifying workplace pension scheme. It must have the following features; –Allows auto enrolment/opt outs/refunds –Default Investment Fund –Pays the minimum level of contributions Pension provider

20. If you operate an existing pension scheme, you need to ensure this will be classed as a qualifying pension scheme. Not all existing schemes comply with the new legislation. A qualifying scheme must: –Allow auto enrolment/opt outs and refunds –Have a default investment fund –Pay the minimum level of contributions Pension provider

21. If you don’t have a pension scheme, or your existing arrangement is not a qualifying workplace pension scheme the: Wren Sterling MasterTrust: offers guaranteed acceptance complies with all relevant legislation Pension provider

22. The Wren Sterling Mastertust The Staging Rush Background Overview & key players Costs

23. The Staging Rush

24. Wren Sterling MasterTrust - Why? Guaranteed acceptance A Qualifying Workplace Pension Scheme Access to 24 investment funds (and growing) Default Fund has an Annual Charge of 0.65% IT to help you assess and communicate with your employees Ongoing annual governance

25. Wren Sterling MasterTrust - Key players Independent trustees Administrators Investment house Investment advisers Middleware developer

26. Wren Sterling Mastertrust - Website https://wrensterlingmastertrust.com

27. Normal Fee Levels No Face to Face support  Year 1- £995 plus VAT  Year 2 onwards - £250 plus VAT per annum Face to Face Support  Year 1- £1,495  Year 2 onwards - £250 plus VAT per annum Both options come with telephone and online support

28. Q & A Thoughts? Questions?

29. Please note You should not view any of the information contained within this presentation as advice This presentation represents our present understanding of current legislation and HM Revenue & Customs practice Please remember that current tax benefits depend on individual circumstances and rates of tax relief may be altered or withdrawn without notice The value of investments may go down as well as up and are not guaranteed Wren Sterling is a trading name of Wren Sterling Financial Planning Limited, which is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665653. Registered office: 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. Registered in England No. 09157918.