Do I need professional advice on auto enrolment?

There are a number of important business reasons why you should seek professional advice on auto enrolment.

The auto enrolment rules means that eligible employees should be automatically enrolled into your pension scheme without any barriers to entry AND without having to make any decision whatsoever!

The employee’s only decision is whether to opt-out or continue with pension membership. This places the responsibility squarely on the shoulders of the employers on many different levels.

You have many choices and decisions to make as a business, and getting it wrong could be very costly now and potentially in the long term.

You have many choices and decisions to make as a business, and getting it wrong could be very costly now and potentially in the long term.

Seeking professional independent financial advice will help you co-ordinate and implement a robust AE project plan.

What decisions do I have to make?

Below are just a few examples of choices and decisions you will have to make with auto enrolment…

  • Should we bring our staging date forward?
  • Do we have different staging dates due to our different PAYE schemes, and should we merge these?
  • When should we start our project?
  • What level of contributions should we commence with, and at what proportion?
  • Should we offer different levels of contributions for different categories of workers e.g. senior management?
  • Should we use postponement?
  • Do our contracts of employment need to be amended?
  • Does our existing pension scheme meet the necessary quality requirements?
  • Should we put in place a new pension scheme instead or alongside?
  • Do we offer employer contributions if employees opt-out?
  • Do you use qualifying earnings or certify a different definition of earnings for pension contributions such as basic pay only?
  • Should we use NEST as your pension provider or choose a pension provider that can satisfy the quality standards.
  • Do we purchase AE assessment software, known as middleware or outsource this to a company or pension provider?
  • What investment fund do we choose as our default investment fund and does it meets the best practice guidelines and requirements set out by the Investment Governance Group, which is chaired by the pension regulator?
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