1. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Automatic enrolment webinar Common challenges The information we provide is for guidance only and should not be taken as a definitive interpretation of the law. Neil Esslemont Head of industry liaison Rebecca Woodley Industry liaison manager 23 November 2015

2. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Welcome We are aiming this webinar at accountants, bookkeepers, financial advisers and payroll providers. Today we will: −provide a summary of what has happened so far −explain our latest research and how it may affect you −show you and your clients where to find help −highlight the key compliance challenges and offer you solutions and tips −show you how to help a client who has made a mistake and has not fully complied with their duties −highlight factors to consider when supporting your clients

3. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. The story so far More than 67,000 employers have automatically enrolled their staff Approximately 100,000 employers to stage in the first three months of 2016 There are over 5.5 million people enrolled into automatic enrolment pension schemes

4. NOV2015WEBINAR 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

5. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. What we know Over 50% of micro employers staging next year have not started making plans for automatic enrolment. Many will leave their preparations to the last minute. You may wish to proactively contact your clients to confirm when their duties start.

6. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Support for employers: step by step guide 1

7. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Duties checker: before you begin

8. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Support for business advisers

9. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Employer duties: where can or will you help? Checking your client’s start (staging) date Being a point of contact Checking who to put into a pension scheme Creating your client’s action plan Working out your clients costs Checking records and payroll processes Choosing a pension Assessing and enrolling staff Writing to your client’s staff Completing the declaration of compliance Knowing your client’s ongoing duties

10. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Compliance challenges, solutions and tips Staging dates Who to put into a pension scheme Postponement Choosing a pension scheme Declaration of compliance Putting it right

11. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Staging dates: how you can help your clients Do your clients understand: –it is only the PAYE references they were using on 1 April 2012 that affect their staging date –what to do if they have more than one PAYE scheme –if they have two dates (one for each PAYE), they use the earliest date not both (they only have one overall staging date - not one per PAYE) All clients, including those who set up their business after 1 April 2012, can find their staging date by using our Duties Checker tool.

12. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who to enrol: some common myths Do your clients understand: –that automatic enrolment can affect people who are NOT employees and are not on the payroll? –the director exemption? –how they can tell us they are not an employer? –when a member of staff could trigger automatic enrolment?

13. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction.   Who to enrol: who do the AE duties apply to? A person who works (or ordinarily works) in the UK is likely to be subject to the automatic enrolment legislation if they : either work under a contract of employment (an employee) or are a personal services worker, meaning they: a)have a contract to perform work or services personally* and b) are not undertaking the work as part of their own business It makes no difference if they are full or part-time, permanent or temporary. * ie they cannot freely send a substitute or sub-contract the work, unless they are unable to perform the work themselves (eg due to sickness)

14. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who to enrol: are they a personal services worker? The employer needs to judge whether or not an individual (who is not a director) with a contract to perform work or services personally* is undertaking the work as part of their own business. Does the employer: –have control over an individual’s method of work (eg hours worked)? –provide any employee benefits? –bear all the significant financial risks in carrying out the work (eg the worker is not financially responsible for their faulty work)? –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, then it would be reasonable to consider that they are not undertaking the work as part of their own business – and they are a personal services worker. The list above is not exhaustive and an employer must take into account all relevant considerations and make a reasonable judgement. * ie they cannot freely send a substitute or sub-contract the work, unless they are unable to perform the work themselves (eg due to sickness)

15. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who to enrol: does this apply to directors? A director of a company would be excluded from the automatic enrolment duties, unless a) the individual works for the company under a contract of employment and b) 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 and therefore the duties don’t apply. The exemptions can apply to more than one director working for the same company.   

16. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who to enrol: tell us you are not an employer If an employer receives a staging date letter from us and do not believe they are an employer, they may use our online form if: 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** Xit is not for employers who have no staff to enrol on their staging date Xit is not for companies in administration or in non-terminal insolvency They will need their PAYE reference and letter code to complete the form.  https://automation.thepensionsregulator.gov.uk/notanemployer https://automation.thepensionsregulator.gov.uk/notanemployer Let us know if circumstances change, as automatic enrolment duties may apply. * for partnerships, non-UK companies or individuals who stop employing workers ** a UK Companies House number must be provided

17. DM2750193 v4Y These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Who to enrol: what earnings trigger automatic enrolment? 2015- 2016* † For other PRP durations, multiply the number of weeks in the PRP by the weekly amount (eg £192.00) or number of months by the monthly amount (eg £833.00) etc - or pro-rata if not an exact multiple of any of the above. * N.B. The Secretary of State will review these figures each tax year. Pay reference period/cycle † Lower level of qualifying earnings Earnings trigger for automatic enrolment Upper level of qualifying earnings Annual£5,824 pa£10,000 pa£42,385.00 pa Bi-annual£2,912.00£4,998.00£21,193.00 1 quarter£1,456.00£2,499.00£10,597.00 1 month£486.00£833.00£3,532.00 4 weeks£448.00£768.00£3,261.00 Fortnight£224.00£384.00£1,631.00 1 week£112.00£192.00£815.00

18. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Myths around postponement Do your clients know that when they use postponement: –the staging date stays the same? –the declaration of compliance date stays the same? –they must notify any postponed member of staff within six weeks of the start of postponement? –the member of staff can choose to opt in to your client’s pension scheme during the postponement period?

19. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Postponement: when can it be used? Postponement can be used: –at the employer’s staging date for any or all existing staff members –on the date a member of staff triggers automatic enrolment –on the first day of employment for any new joiner after the staging date. Each member of staff can be postponed from one day up to maximum of three months. The employer may with to use postponement: –to delay the assessment of staff until a more convenient date, such as the start of a tax month or week, or –for seasonal or temporary staff members who may leave in the next 3 months.

20. NOV2015WEBINAR 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 can be used for automatic enrolment –where to start looking when choosing a pension scheme? –what factors to consider when choosing a pension scheme? –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?

21. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Choosing a new pension: where to start 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.

22. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Declaration of compliance: myths and tips Do your clients know: –they do have to complete their declaration even if they have no one to automatically enrol? –registering for the online gateway is not the same as completing your declaration? –the declaration should not be completed before all postponements have come to an end? –if they do not complete their declaration within 5 months of their staging date they may get a fine of £400? –they should check if you or another business adviser is completing the declaration for them? –the online process can be started early and the declaration partially completed?

23. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. Tell us about the mistake. Our approach is that an employer should take reasonable steps to put the staff member back in the position they would have been in if they had complied on time. That means the employer should: –put the members of staff into their scheme, backdated to the staging date, and –ensure backdated employer pension contributions are paid, and –ensure backdated staff pension contributions are collected If we decide to take formal action against the employer and the staff member should have been put into the pension scheme more than 3 months ago, we have the power to: –require the employer to pay both their own and staff contributions, and –require interest to be added to outstanding contributions Putting it right: what if your client makes a mistake?

24. NOV2015WEBINAR 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 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/notanemployer https://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 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/subscribehttps://forms.thepensionsregulator.gov.uk/subscribe Find a letter code online – https://automation.thepensionsregulator.gov.uk/LetterCode https://automation.thepensionsregulator.gov.uk/LetterCode

25. NOV2015WEBINAR These slides remain the property of The Pensions Regulator and their content should not be altered on reproduction. We are here to help! Request a guest speaker: https://secure.thepensionsregulator.gov.uk/speaker-request.aspx https://secure.thepensionsregulator.gov.uk/speaker-request.aspx Contact us at: www.tpr.gov.uk/contact-us.aspx www.tpr.gov.uk/contact-us.aspx Thank you The information we provide is for guidance only and should not be taken as a definitive interpretation of the law.