1. 22/01/2015
11 October 2016

2. Rich Cooper Jamieson Christie Chartered Financial Planners
22/01/2015
Rich Cooper Jamieson Christie Chartered Financial Planners
Rich Cooper
Intro – Self– Jamieson Christie Chartered Financial Planners – Employee Benefit consultants
Explain journey Jamieson Christie taken to date
Next 90 mins run through the key things you need to know about Auto-Enrolment – happy to take questions as we go through the presentation but I may ask you to hold fite if it is covered in the presentation.

3. Workplace Pensions Summary of the current position on Auto-Enrolment
22/01/2015
Workplace Pensions
Summary of the current position on Auto-Enrolment
Overview of Employer Requirements
Update from “The Pension Regulator”
Employer Requirements –The Real Picture
Salary Exchange – A Note of Caution
Jamieson Christie - How We Can Help

4. Auto-Enrolment Update
28/04/2015
Auto-Enrolment Update
1.2 million companies climbing the mountain
Do you find a guide or go it alone?
10 different routes which one do you choose?
Where are we on the Journey - To date:
As at the end of April 2015
Around 46,500 employers have completed their declaration of compliance i.e set up their schemes if they had too
Around 40,000 have to stage this year.
The employers currently staging are those with less than 50 employees and more than 1 there is no pattern of employers until after April 2017 when it is all the new-co’s or new corprate structures that will stage some of which could be significantly larger than 50 Employees
Draw parallel of climbing everest - Before you climb Everest you have to set up base camp before the hard work of getting to the peak commences
So why is it a major challenge – by the end of this year around 85,000 employers will have set up their schemes in the next two years around 512,000 in 2016 & 788,000 in 2017 will need to set up their schemes
What is crazy about this is it goes from about 40,000 a year for 2014 & 2015 to more than 42,000 a MONTH in 2016 and almost 66,000 a MONTH in 2017

5. Employer Responsibilities
22/01/2015
Employer Responsibilities
What are their duties?
Employers must:
Have a pension scheme
Auto enrol some employees and
Enrol other employees...
...into an ‘Automatic Enrolment Scheme’
Pay contributions
On the face of it the employers responsibilities /duties look straight forward the TPR states that .
Employers must:
Have a pension scheme
Auto enrol some employees and
Enrol other employees...
...into an ‘Automatic Enrolment Scheme’
Pay contributions
However when you start to look at the real issues and detail which we will do as we go through some of the main issues it soon becomes more of a minefield the TPR guides are very extensive in fact there are 579 pages of detailed guidance for employers – latest update was April 2015 and it is a really interesting read.

6. Employer Responsibilities
22/01/2015
Employer Responsibilities
Explain Easy to find staging date

7. Sole Director Companies or No Employees
22/01/2015
Sole Director Companies or No Employees ?
Explain Easy to find staging date

8. Admin duties, do’s and don’ts
22/01/2015
Admin duties, do’s and don’ts
Employers Must
Employers Must Not
Select and provide a suitable scheme for their workers
Auto enrol and re-enrol/deduct payments
Complete Scheme Compliance
Provide information to eligible and non-eligible jobholders
Provide information to scheme/provider
Process opt outs/make refunds
Keep records - 6 years (opt-in and opt-out notices 4 years)
Discourage membership
Give jobholders the opt-out form
Encourage opt-outs
Use ‘Prohibited recruitment conduct’
Give advice
Lets look at in a bit more detail
Talk through key points
Highlight – Assessment of workforce –Initial, Ongoing, Triannually
Information 3 types of workers
Experience of Data in right format
Opt-Outs have time limit for being dealt with and premiums refunded
Record Keeping 6 years - 4 years

9. Eligibility Qualifying Earnings AGE < £5,824 £5,824 - £10,000
22/01/2015
Eligibility
Qualifying Earnings
AGE
< £5,824
£5,824 - £10,000
> £10,000
16-21
Entitled Worker
Non-Eligible
Jobholder
22-SPA
Eligible Jobholder
SPA-75
Talk through - Eligibility criteria –
Highlight action needed if become Eligible – New Starter. /Overtime –
Use of postponement

10. Employer Costs Based on Qualifying Band Earnings Steady State
22/08/2015
Employer Costs
Based on Qualifying Band Earnings
Steady State
Talk though slide -
But what does that mean in actual costs –
Qualifying earnings all earnings between £5,824 & £42,385
10 Employees on average of £16,000 = £1017 per year initially £3,052 eventually + Admin /Set up costs quick increases between 2017/2018 need to budget for and built into your bottom line

11. To Use or Not to Use Qualifying Earnings
22/01/2015
To Use or Not to Use Qualifying Earnings
Qualifying Earnings have to be used for your initial assessment.
They do not need to be used for calculating contributions
You can certify using 3 separate tiers

12. Certification Teir Rule Initial Min Level Min Level From Apr 18
22/01/2015
Certification
Teir
Rule
Initial Min Level
Min Level From Apr 18
Min Level From Apr 19 1
Pensionable pay = Basic pay
Emp 2% Eee 1%
Emp 3% Eee 3%
Emp 4% Eee 5% 2
Pensionable pay = Basic pay ( 85% of total pay)
Emp 1% Eee 1%
Emp 2% Eee 3%
Emp 3% Eee 5% 3
Pensionable pay = Total pay
Emp 3% Eee 4%
Explain certification – levels and Pensionable Earning
- Cover off existing scheme certification rules

13. The Pension Regulator Update
22/01/2015
The Pension Regulator Update

14. The Pension Regulator Update
22/01/2015
The Pension Regulator Update
Each quarter The Pension Regulator gives an update of the compliance position and fines issued. This has seen a massive increase over the last 12 months* *TPR Compliance Update July 2016.
Compliance Area
Number in last Quarter
Total to date
Compliance Notices
3,392
11,099
Unpaid Contribution Notice
177
582
Fixed Penalty Notice
861
3,045
Escalating Penalty Notice 38
165

15. The Pension Regulator Update
22/01/2015
The Pension Regulator Update
The Pensions Regulator (TPR) has warned small employers over auto-enrolment staging dates.
TPR said around 20% of small employers and almost half of micro employers did not know the exact date they needed to comply with auto-enrolment laws.
It has warned employers to start preparing for auto-enrolment 12 months ahead of their staging date, as failure to prepare in good time could lead to a financial penalty.
Don’t ignore any compliance or penalty notices

16. Employer Requirements
22/01/2015
Employer Requirements
12- 9 Months Before Planning Stage
Know Your Staging Date
Analyse Workforce
Understand Your Costs
Agree The Scheme Design
9-0 Months Before. Implementation Stage
Choose a Pension Scheme
Postponement?
Prepare Communications
Staging Date
Staging and ongoing
Automatically Enrol Staff
Communicate
Declaration of Compliance
Maintain Records
Fulfil Ongoing Responsibilities

17. Why To Start Planning Early
22/01/2015
Why To Start Planning Early
Capacity Issues
Know your staging date and work backwards
Know the size of the problem
Build in the admin/resource/payroll requirements
Manage your increased employee costs / salary exchange/reduced pay increases
Providers being selective
Providers not offering terms to some employers
Avoid the possible fines from The Pensions Regulator
Get an adviser on board (limited number)
Talk Through slide

18. The Real Picture Planning ahead is key.
22/01/2015
The Real Picture
Planning ahead is key.
Very large volumes staging from January 2016

19. The Real Picture - Myths V Reality
22/01/2015
The Real Picture - Myths V Reality
Common myths - I
Myth
All employees need to be enrolled
Postponement delays the staging date and there is no need to do anything until then.
Employers can work out their own staging date.
Pensionable pay is used to determine which category a worker is (e.g. EJH).
I can bring my staging date forward to any date.
Reality
Only Eligible Jobholders need to be enrolled
Postponement does not change the staging date (and other duties still apply in this period).
Employers are unlikely to know their PAYE size on 1 April12, so should use staging date tool.
Qualifying Earnings must be used for assessment, not pensionable earnings.
There are fixed dates to which you can bring forward your staging date and specific rules need to be followed.

20. The Real Picture - Myths V Reality
22/01/2015
The Real Picture - Myths V Reality
“It will be best just to use my existing group pension scheme for all my employees”

21. The Real Picture – Employer Cost Example
22/01/2015
The Real Picture – Employer Cost Example
Employer 20 employees – 8 are members of existing pension scheme 3% Employer 3% Employee of basic salary - Payroll is £400,000
Current Cost to employer = £4,800 p.a.
Assume uses current scheme and 90% take up, new cost = £10,800 p.a.
Set up a separate Auto Enrolment scheme using Qualifying Earnings and Minimum Contribution 90% take up New Cost = £6,217 p.a.
Saving over 2 years until next contribution increase = £9,166
Using Postponement saved a further £354
Further savings being made using salary exchange

22. Salary Exchange Employee earning £20,000 per annum
2% employer & 2% gross employee contribution
Employee Exchanges Salary to maintain same take home pay
50% of any employer NI Savings retained by employer
A Word of Caution
Minimum Wage
No Contractual
Government Position

23. The Real Picture - Myths V Reality II
22/01/2015
The Real Picture - Myths V Reality II
Common myths - I
Myth
It will be easy to find a pension provider
None of my employees will join
My payroll system will do everything for me.
Once I have set the scheme up there is nothing left for me to do.
Reality
Pension Providers are being very selective – For example…
Take up rate is in excess of 90%
All Providers need data in a specific format – manual intervention will be required.
There are a large number of ongoing requirements for employers.

24. Meeting provider data requirements a challenge
22/01/2015
Meeting provider data requirements a challenge

25. Meeting provider data requirements a challenge
22/01/2015
Meeting provider data requirements a challenge
Providers require employers to upload employee data in a specific pro- forma
Requires updating / transferring payroll data into this pro-forma prior to staging
Although not difficult, this process was often described as extremely time consuming – often has to be done manually due to:
Fiddly formats – extreme precision required around capitalisation and commas or the system will not accept the data (e.g. ‘Mr.’ not ‘Mr’)
Entire pro-forma cannot be uploaded until everything is rectified – employer’s responsibility to resolve these issues manually
Unexpected glitches
e.g. one employer employed a husband and wife who shared an address; the system would not accept a duplicate address
Non ‘user-friendly’ forms to populate
e.g. information not flowing in an order that mirrors the payroll, prohibiting a straight data transfer

26. The Real Picture –Ongoing Responsibilities
22/01/2015
The Real Picture –Ongoing Responsibilities
Every Payroll Period
Calculate contributions, create a contribution schedule, advise provider and make payment.
Continually Assess Workforce – to check eligibility.
Deal with New Joiners, Leavers and Opt-Outs and Opt-Ins.
Ongoing
Keep Records for 4 to 6 years for different information.
Re-enrolment every 3 years.
Annual Audit.

27. Want to know what auto-enrolment really means?
22/01/2015
Want to know what auto-enrolment really means?
Let Jamieson Christie help you through the pensions maze.
Our Proposition

28. 22/01/2015
Our Basic Proposition
Menu based proposition with 3 distinct stages based on the size of the employer
Getting Started Report
Implementation
Ongoing Annual Support

29. 22/01/2015
Our Basic Proposition
Menu based proposition with 3 distinct stages based on the size of the employer
Getting Started Report – from £625
Implementation – from £600
Ongoing Annual Support – from £650
Versus
The Cost of Getting it Wrong – Daily Fines

30. In Summary Know Your Staging date
22/01/2015
In Summary
Know Your Staging date
You will need to auto-enrol eligible employees
You will need to give non-eligible employees the option of joining.
It will cost you a minimum of 3% of qualifying earnings from Apr 2019
Many providers are not prepared to look at schemes with less than 6 months to their staging date
There will be a capacity issue (providers/advisors)
The opt out rate is less than 10% (what impact will that have on costs)
You cannot encourage employees to opt out/not join

31. In Summary contd. The fines for getting it wrong are high
22/01/2015
In Summary contd.
The fines for getting it wrong are high
By starting early you remain in control and manage your costs
Ensure your contracts of employment are up to date and correct

32. Auto-Enrolment Summary
28/04/2015
Auto-Enrolment Summary
Of course we can take your scheme –we have plenty of room !
Let you be warned….

33. ….could I just ask
Any Questions?

34. 22/01/2015
Disclaimer
This presentation represents Jamieson Christie Wealth Management Limited’s interpretation of current and proposed legislation and HM Revenue & Customs practice as at the date of publication - these may change in future.
Past performance is not a guide to the future. Prices can fall as well as rise meaning you may not get back the value of your original investment. Investment returns may fluctuate and are not guaranteed.
The information shown is based upon our understanding of taxation rules and legislation at the time of presentation and is subject to change. Any views expressed by the presenters are their own and should not be taken out of context or relied upon as advice. The purpose of the presentation is to provide information and stimulate debate, it is not meant to be considered as financial advice and no actions should be taken without consultation with a suitably qualified adviser.
Full details of the advice services provide by Jamieson Christie are available upon request.
Jamieson Christie Wealth Management Limited is a directly authorised company, authorised and regulated by the Financial Conduct Authority, registration number
October 2016