Workplace Pensions

Managing a workplace pension scheme is proving a major headache for many employers. We have recognised that there is a real need for a comprehensive support service to allow employers to get on with what they do best – running their business.

Let us shoulder the burden of your workplace scheme: we have a range of solutions to suit every employer.

Workplace Pension Basics:

It is now compulsory for all UK employers to provide a Qualifying Workplace Pension scheme. Qualifying schemes must meet a range of criteria set by the Pensions Regulator, including:

  • Automatic enrolment of all eligible staff into the scheme, checked and amended as necessary every time you pay your staff
  • A default investment fund suitable for the business’s employees
  • Minimum contribution levels by the employer and employee, as specified in the rules. These are set to increase year-on-year until April 2019.
  • Review and re-enrolment every three years and the accompanying declarations

Contributions

A fundamental element of Workplace Pension regulations is the duty of the employer to contribute to the employee’s fund. Minimum levels have been set out in the rules: they will increase annually until April 2019. The level of contribution will depend on the definition of earnings you use in the calculation, but as an example we give below the contribution levels calculated using the “qualifying earnings” definition. *

Date period

Total Minimum Contribution

% of qualifying earnings

Minimum Element from

Employer

% of qualifying earnings

From staging to 5 April 2018

2%

1%

6 April 2018 to 5 April 2019

5%

2%

6 April 2019 onwards

8%

3%

 

*Qualifying earnings are those that fall between a specific band of the National Insurance Primary Threshold (£5,876 and £45,000 per year in 2017/2018). Other earnings definitions can be used: we’ll help you decide which is most appropriate for your workforce.

Auto Enrolment

By now all those businesses that were in existence in October 2012 should have reached their staging dates and begun the auto-enrolment process, with only newer businesses still to begin. If you have a business that has still to go through staging, you can find out more about the process and our AGI Auto Enrolment Services on our Auto Enrolment page.

Many of those who have schemes already in place are experiencing challenges with the day-to-day running of the scheme and may be looking at a future change of scheme type or provider. We can help you decide if your current scheme and processes are still fit for purpose and help you find alternative routes if needed. In addition, through our Auto Enrolment Services, we can provide ongoing support and administration for your scheme.

Re-Enrolment

Those employers who are approaching the third anniversary of their staging date have a new deadline to consider: this is the time that you must re-enrol all those who opted out of the scheme the first time around and, importantly, you must assess your current scheme to make sure it still qualifies: there have been changes in the rules about charges, for example, since their first introduction. For more details, see our Re-Enrolment page.

Contact us to discuss your Workplace Pension needs.

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