1. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Neil Esslemont Head of industry liaison team Rebecca Woodley Industry liaison team December 2014 Staging dates The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.

2. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Scope Staging dates No prior knowledge is needed. This module will: –explain how staging dates are worked out –tell you what options you have to change your staging date –describe what happens if the company structure changes, and –explain the terminology used. You may wish to view parts 1 or 2 of the Introduction to automatic enrolment module and/or the Who is a worker? module.

3. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Contents How is the staging date worked out? What happens on the staging date? Can I change the staging date? Impact of organisational changes. Review of module. What next?

4. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates How is the staging date worked out?

5. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who goes first? An employer only has one staging date. The employer duties apply to each employer from their staging date. The staging date is based on the size of the employer’s PAYE scheme or schemes as of 1 April 2012. Generally, larger employers will stage before smaller ones: –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 of 1 April 2012

6. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The staging date is based on HMRC’s record of the size of employer’s PAYE scheme(s) as of 1 April 2012. The employer will not necessarily know the number of people in the PAYE record, as it will probably not be equal to the number of employees they had on 1 April 2012. The number of people in a PAYE scheme may include staff who: –had left the company and were no longer employed, or –were only being paid a pension. Any changes in the size of the PAYE schemes or which PAYE schemes are being used after 1 April 2012 will not change the staging date. The size of PAYE schemes

7. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. For an employer that was using, as of 1 April 2012, any PAYE with 30 or more people, the staging date is determined by the number of people in the largest PAYE scheme that the employer was using at that time. For employers where all the PAYE schemes they were using, as of 1 April 2012, had less than 30 people, their staging date will be based on the characters in their PAYE reference numbers. Please note that if, as of 1 April 2012, an employer was using a PAYE reference of a scheme registered in another company’s name to pay anyone: –that employer will also be considered as using that PAYE, and –they could have an earlier staging date, if that PAYE scheme was larger than all of their own PAYEs. You should use our staging date tool to find your date (see Useful links) –enter all PAYEs being used as of 1 April 2012 and the earliest date is the one that applies to that employer. Finding the staging date

8. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates People in largest PAYE (on 1 April 2012) Staging date 120,000 or more1 Oct 2012 50,000-119,9991 Nov 2012 30,000-49,9991 Jan 2013 20,000-29,9991 Feb 2013 10,000-19,9991 Mar 2013 6,000-9,9991 Apr 2013 4,100-5,9991 May 2013 4,000-4,0991 Jun 2013 3,000-3,9991 Jul 2013 2,000-2,9991 Aug 2013 1,250-1,9991 Sep 2013 800-1,2491 Oct 2013 500-7991 Nov 2013 350-4991 Jan 2014 250-3491 Feb 2014 * Staging date tool: www.tpr.gov.uk/employers /tools/staging-date.aspx www.tpr.gov.uk/employers /tools/staging-date.aspx Do not assume you know the number of people – use our staging date tool*

9. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates continued… People in largest PAYE (on 1 April 2012) Staging date 160-2491 April 2014 90-1591 May 2014 62-891 July 2014 611 August 2014 601 October 2014 591 November 2014 581 January 2015 54-571 March 2015 50-531 April 2015 40-491 August 2015 30-391 October 2015 Fewer than 30 (depends on the last 2 characters in PAYE reference number) 1 June 2015 to 1 April 2017 Employers who do not have a PAYE scheme 1 April 2017 or New employer/PAYE scheme user (depending on when PAYE income first payable ) 1 May 2017 to 1 Feb 2018 Do not assume you know the number of people – use our staging date tool* * Staging date tool: www.tpr.gov.uk/employers /tools/staging-date.aspx www.tpr.gov.uk/employers /tools/staging-date.aspx

10. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Employers without a PAYE and new employers An employer who had no PAYE scheme as of 1 April 2012 will stage on 1 April 2017, but –an employer who starts to use a PAYE scheme for the first time after 1 April 2012 will be treated as a new employer. New employers setting up business on or after 1 April 2012 (up to 30 September 2017) will have a staging date between 1 May 2017 and 1 February 2018. Creating a new PAYE reference does not mean they are considered a new employer (unless the employer was not using PAYE for any of their staff as of 1 April 2012).

11. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging profile (volumes of employers) Planning ahead is key. Very large volumes staging from January 2016 Q1 2015/16 peak includes small and micro employers

12. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates What happens on the staging date?

13. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment legislation gives employers a duty to: automatically enrol all eligible jobholders communicate to workers providing timely and appropriate information allow non-eligible jobholders to opt-in and entitled workers to join manage opt-outs within the opt-out period and promptly refund contributions automatically re-enrol all eligible jobholders every three years complete declaration of compliance (registration) with the Regulator keep records, and maintain payments of contributions. The employee safeguards state that employers:  must not induce workers to opt-out or cease membership of a scheme  must not indicate to a potential jobholder that their decision to opt-out will affect the outcome of the recruitment process Overview of legal duties and safeguards

14. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. At staging The employer duties apply to each employer from their staging date. The duties apply to all of the employer’s workers –irrespective of which PAYE scheme they are paid through, and –it does not matter whether or not the worker is paid using PAYE. The employer may choose to postpone* the assessment of any or all of their workers at their staging date and any or all new joiners – for up to three months - but this will not change the staging date. The employer will have to issue postponement notices and handle any opt-in requests during postponement. * See our planning tool and ‘automatically enrol your staff’ for further details on postponement

15. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates Can I change the staging date?

16. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Changing the staging date All employers in existence on 1 April 2012 have their staging date set. All future fluctuations in PAYE sizes have no effect on the staging date. Creating a new PAYE reference does not mean they are considered a new employer (unless they were they were not using any PAYE for any of their staff as of 1 April 2012). The duties apply to all of the employer’s workers, irrespective of which PAYE scheme they are or were being paid through. If on their staging date, an employer has no workers, they will have no duties at that time. Any employer may bring their staging date forward to an earlier date, but will need to have a pension scheme in place and must inform us, giving at least one month’s notice (ie one month before the new staging date.)

17. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The alternative staging date Small employers would typically have a staging date of 1 August 2015 or later. However, a small employer (with fewer than 50 workers as of 1 April 2012), who has a staging date on or before 1 April 2015, may choose to move their staging date to a pre-prescribed alternative date between August 2015 and April 2017. An employer who was a small employer on 1 April 2012, but has now increased in size, is still considered a small employer. An employer with fewer than 50 workers now, but had 50 or more workers on 1 April 2012, is not considered a small employer. You should inform us if you wish to use the alternative date, so that we can change the timing of any letters we send to you. These alternative staging dates are shown on the following table.

18. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Alternative staging dates for small employers Original staging date Prescribed alternative date employer can choose 1 October 2012 and 1 November 20121 August 2015 1 January 2013 and 1 February 20131 October 2015 1 March 2013 and 1 April 20131 January 2016 1 May 2013 and 1 June 20131 February 2016 1 July 2013 and 1 August 20131 March 2016 1 September 2013 and 1 October 20131 April 2016 1 November 2013 and 1 January 20141 May 2016 1 February 2014 and 1 April 20141 July 2016 1 May 2014 and 1 July 20141 September 2016 1 August 2014 and 1 October 20141 November 2016 1 November 2014 and 1 January 20151 February 2017 1 March 2015 and 1 April 20151 April 2017

19. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates Impact of organisational changes?

20. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Mergers and acquisitions If one company acquires another company, this will not necessarily change the staging date or duties of either company. Any change of ownership of a company is immaterial, other than through any consequential organisational change (eg any transfer of staff). Any change in the usage of PAYE schemes will not affect the staging date (unless a company uses the PAYE system for the first time). Any change in the size of a company after 1 April 2012 does not change whether it is treated as a small employer (see alternative staging dates.) If employment contracts are transferred between companies (eg through TUPE) the employees are treated as leaving one employer and joining their new employer. If the new employer has already passed its staging date then the duties will apply to these new workers on their joining date. If a company is dissolved it will have no duties. If a company has no workers on their staging date then the company will have no duties.

21. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Planning timeline - www.tpr.gov.uk/plannerwww.tpr.gov.uk/planner

22. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Review of the module

23. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Question 1: How can an employer find out their staging date? Answer: Use our staging date tool or, if available, refer to our letter. Question 2:What should an employer do if they receive more than one letter from us with different staging dates? Answer: If an employer has more than one PAYE scheme, use our staging date tool and enter all PAYE references (earliest date applies) - or contact us. Question 3:If, as of 1 April 2012, an employer was paying some of their own employees using another company’s PAYE reference, this will not affect their own staging date, as that PAYE is registered in the other company’s name. True or false? Answer: False. The employer would be considered to be using that PAYE reference and, if that PAYE was the largest PAYE scheme used as of 1 April 2012, it would determine their staging date. Questions and answers

24. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. As of 1 April 2012, ACME Industries plc owned two subsidiary companies: ACME Industries had 11,500 workers and was using three PAYE schemes Betamax Components Ltd had 450 workers and was using their own PAYE scheme, whilst Gamma Ray Ltd had 49 workers and were paying their staff using one of ACME Industries’ PAYE references Question 4: Which companies can delay their staging date? Answer: Gamma Ray Ltd was using one of ACME Industries’ PAYE schemes and may have a staging date on or before 1 April 2015. If so, as they had less than 50 workers on 1 April 2012, they may choose to move their staging date to a pre-prescribed alternative date between August 2015 and April 2017. Question 5: On 1st January 2014, ACME sold Betamax to another company. How will this affect these companies’ staging dates? Answer: This will not change the staging date of any company, but the workers might be transferred to another employer. Questions and answers continued…

25. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates What next?

26. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Know your staging date Who is a worker? Reviewing your pension schemes Employee safeguards Assessment and automatic enrolment Communicate to your workers Postponement and transitional period Joining/ opting In Record- keeping/ Contribute to your pensions Opting out Contractual versus Statutory enrolment Declaration of compliance (register) NowBetween now and stagingAt staging and beyond Automatic enrolment Introduction to automatic enrolment Part 1: Employer duties Part 2: Getting started

27. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links Modules: Introduction to automatic enrolment, Staging dates and Who is a worker? www.tpr.gov.uk/help-clients www.tpr.gov.uk/help-clients Staging date tool: www.tpr.gov.uk/employers/tools/staging-date.aspx www.tpr.gov.uk/employers/tools/staging-date.aspx Planning tool: www.tpr.gov.uk/planner www.tpr.gov.uk/planner Letter templates for employers: www.tpr.gov.uk/employers/letter-templates-for-employers.aspx www.tpr.gov.uk/employers/letter-templates-for-employers.aspx Information about declaration of compliance (registration): www.tpr.gov.uk/employers/automatic-enrolment-declaration.aspx www.tpr.gov.uk/docs/automatic-enrolment-online-registration-checklist.pdf www.tpr.gov.uk/employers/automatic-enrolment-declaration.aspx www.tpr.gov.uk/docs/automatic-enrolment-online-registration-checklist.pdf Our detailed guides for employers and pension professionals: www.tpr.gov.uk/pensions-reform/detailed-guidance.aspx www.tpr.gov.uk/pensions-reform/detailed-guidance.aspx

28. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Useful links continued… More information about pensions and automatic enrolment: The Association of British Insurers: www.abi.org.uk/pensionproviders www.abi.org.uk/pensionproviders The National Association of Pension Funds: www.napf.co.uk www.napf.co.uk National Employment Savings Trust: www.nestpensions.org.uk www.nestpensions.org.uk Independent Financial Advisers: www.unbiased.co.uk www.unbiased.co.uk www.vouchedfor.co.uk The Pensions Regulator: www.tpr.gov.uk/docs/selecting-a-good-automatic-enrolment-scheme.pdf www.tpr.gov.uk/docs/selecting-a-good-automatic-enrolment-scheme.pdf www.tpr.gov.uk/docs/introduction-code-13.pdf

29. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. We’d appreciate your feedback on this presentation https://www.surveymonkey.com/s/TPRBoxSetFeedback

30. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. We are here to help Contact us at: www.tpr.gov.uk/contact-us.aspx www.tpr.gov.uk/contact-us.aspx Subscribe to our news by email: www.tpr.gov.uk/subscribe.aspx www.tpr.gov.uk/subscribe.aspx Connect with us on LinkedIn: www.linkedin.com/groups?gid=2675456 www.linkedin.com/groups?gid=2675456 Follow us on Twitter: https://twitter.com/TPRgovuk https://twitter.com/TPRgovuk Thank you The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.

31. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Glossary

32. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment terms Automatic enrolment scheme – a qualifying pension scheme which can be used for automatic enrolment Eligible jobholder (EJH) – a worker who must be automatically enrolled into an automatic enrolment scheme Entitled worker (EW) – a worker who is entitled to join a pension scheme Jobholder – an eligible jobholder or non-eligible jobholder Non-eligible jobholder (NEJ) – a worker who has the right to opt in to an automatic enrolment scheme Office holder – a person who has been appointed to a position by a company or organisation, but doesn’t have a contract or receive regular payment Personal services worker – an individual who has contracted to perform work or services personally (this is sometimes referred to as a ‘contract of services’)

33. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment terms continued… Postponement – an optional mechanism to delay the automatic enrolment duties for workers Qualifying earnings – the earnings which determine a worker’s category (EJH, NEJ or EW) and (as a band of earnings) may be used as the definition of pensionable earnings Qualifying scheme – a pension scheme which meets the minimum criteria and so existing members who are eligible jobholders will not need to be automatic enrolled Staging date – the start date of an employer’s automatic enrolment duties Worker – an individual who works under a contract of employment (or a personal services worker)

34. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Other terms Active member – a person who is currently a member of the pension scheme (and would normally be contributing to the scheme) Defined benefit (DB) – a pension scheme where the benefits payable on retirement are known (eg ‘final salary’, where the retirement income is based on the member’s salary) Defined contribution (DC) – a pension scheme where the contributions are known, but the benefits are not guaranteed and are likely to depend on the fund value at retirement Deferred member – a person who is no longer an active member of the pension scheme, but has accrued some benefits (payable on retirement or could be transferred)

35. DEC14SD3 These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Other terms continued… Hybrid – a pension scheme with a mixture of DB and DC components PAYE (Pay As You Earn) – HM Revenue & Customs’ (HMRC) tax payment mechanism PAYE scheme – HMRC’s record for an employer who employs a worker or workers for whom PAYE taxable income is payable PAYE scheme reference number – a number issued by HMRC to identify each employer’s PAYE scheme(s) Pensionable earnings – the earnings on which pension contributions are due