Spring auto-enrolment update for members in practice
The latest messages from The Pensions Regulator (TPR) to members in practice on auto-enrolment implementation.
As the smallest employers approach their staging dates, advisers continue to have an important role in ensuring their clients comply with their auto-enrolment duties.
Do you know which of your client’s staff will need to be put into a pension scheme?
Your clients will need to assess all their staff in order to work out what they need to do for them, and whether they need to put them into a pension scheme and make contributions to it. This will depend on their age and how much they earn. Even if they employ short-term, seasonal, temporary staff or other staff who are not on regular hours or incomes (for example; fruitpickers, IT contractors or labourers), the legal duties will apply to them.
TPR has information to help you to assess your client’s staff and enrol them into a pension scheme.
Have you checked if your client’s existing pension scheme can be used for automatic enrolment?
Don’t assume that just because your client has an existing pension scheme in place (for example, a stakeholder pension) that they will be able to use it to comply with their automatic enrolment duties.
If your client wants to use their existing scheme, they will need to check with their provider if it can be used to meet their automatic enrolment duties. If it can’t they will need to choose a new scheme to meet their automatic enrolment duties.
Don’t let your clients risk a fine – make sure the Declaration of Compliance is filed correctly
Every employer must complete a declaration of compliance within five months of their staging date. Although the declaration can be completed on their behalf by their accountancy adviser, it is still the employer’s legal responsibility to ensure that it’s completed correctly and on time. Some employers have become non-compliant after failing to complete their declaration in full. TPR will send confirmation when the declaration has been completed.
If you are completing the declaration on behalf of your clients, don’t leave it until the last day – you can save your progress as you go. Click here to access the automatic enrolment declaration.