Over 700,000 small & micro employers will be looking to auto-enrol in the the next 6 months, accordingly to The Pension Regulator.
The automatic enrolment legislation imposes duties on employers that legally must be complied with. It also gives employers powers to enrol staff into a pension scheme without their consent. Employers have duties in respect of all their workers, including any “personal service workers”
In short, employers must:
- Automatically enrol workers who meet certain criteria into a pension scheme and pay contributions for them.
- Allow other workers to join on request, for some of whom the employer will have to pay contributions for.
- Communicate with all workers about their rights
- Comply with the employee safeguards by avoiding inducement and prohibited recruitment conduct.
- Complete declarations of compliance with TPR
- On occasion automatically re-enrol staff every three years
- Maintain payment of pension contributions
At the heart of auto-enrolment is a pension scheme. Employers have to choose the scheme, set the contribution levels and make sure that the correct data and contributions are transmitted to the provider.
Sound overwhelming? It need not be.
Together Simon & Ken will be unwrapping the auto-enrolment process.
Tune in from 1pm on Channel Radio this Friday.