There is a vast amount of scaremongering at present around the roll-out of auto enrolment. Whilst it is slightly concerning that many large employers still haven’t taken certain steps to prepare for auto enrolment, for employers with staging dates in 2013 there is time to prepare for a smooth transition towards auto-enrolment.
The process can be relatively straightforward if employers select a simple, cost effective design to maximise value for their employees, and there are essentially three key elements for employers to consider:
- When? An employer’s staging date is determined by the number of people on the payroll. The Pensions Regulator will send out a letter 12-18 months ahead of this date.
- What do I need to do?
Identify an auto-enrolment compliant pension scheme; decide which pension provider to select and establish what needs to be done by payroll and HR.
- How do I communicate this in the most effective way to my employees?
Identify how to provide employees with the relevant information to ensure the new legislation doesn’t distract or confuse. This will allow them to make informed decisions, thus making the process of enrolling employees simple and hassle-free so that no matter what choice someone makes, it is a positive experience.
It is apparent from our discussions with employers of all sizes that they all have differing needs when it comes to auto-enrolment, which is why we offer a modular auto-enrolment solution. Ultimately, employers are looking for a simple solution that can be easily rolled out and communicated; a cost efficient pension provision which will remove all the burden, compliance and risk, whilst at the same time providing value to employers and their employees. At NOW: Pensions, we believe in having a simple auto-enrolment solution that doesn’t divert the focus away from what employers are good at – running their business. In order to be in a good position and well-prepared, we recommend making the necessary decisions at least six months before your staging date.
With more than 4.7 million members and 45 years’ experience in managing and administering the largest pension scheme in Denmark, we believe ATP’s unique experience in running a similar scheme means NOW: Pensions is well placed to offer a better deal to UK employees.
Whether you view auto-enrolment as an obligation or an opportunity, NOW: Pensions believes starting with these 3 simple steps can transform the process into a smooth and engaging experience.