Retirement Solutions

Automatic Enrolment

Hoskin Financial Planning

Summary

• Auto Enrolment is designed to get more people saving for the future

• Employers must have some sort of pension provision for all employees

• Employers need to identify their staging date – this determines when their employer’s duties will apply

• Employers will have to set-up and contribute to a pension scheme suitable for automatic enrolment

• Employers must assess their workforce to determine which duties they need to carry out

• Employers will have different duties depending on the types of worker they employ

• Employers will need to keep records of how they’ve met and continue to meet their duties

• The Pensions Regulator (TPR) will ensure employers comply with the new duties and impose penalties on those who don’t

Or else...

Compliance/unpaid contribution noticeWarning

Fixed penalty - £400‘Wake up call’

Escalating penalty

Workers Penalty per day1-4 £505-49 £50050-249£2,500250-499£5,000500+£10,000

Persistent offenders

What happens if you get it wrong?

Third parties

£400 fixed£200 per day

escalating

Prohibited recruitment conduct

Workers Fixed penalty1-4 £1,0005-49 £1,50050-249 £2,500250+ £5,000

Doing nothing is not an option...

“A person guilty of an offence under this section is liable -

a) on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or both;

b) on summary conviction to a fine not exceeding the statutory maximum.”

The Pensions Act 2008, Section 45(2)

“…there is a risk if we allowed employers to say “we left it too late and it was difficult”, it would set a

precedent. We cannot have that kind of excuse,”...

TPR spokesmanNew Model Adviser 21/09/2012

Source: New Model Adviser “TPR shows no mercy as firms struggle with auto enrolment” 21 September 2012.

Hot topics (the importance of professional connections)

Who is a worker?

Contractual enrolment

Salary exchange

Payroll

Car allowances

NEST changes...etc...

Employers required to register by staging date50 or more people in PAYE scheme

(lower estimate)

Source: The Pensions Regulator, “Automatic enrolment: Staging profile and forecast volumes”, September 2012

2,000-2,999

160-89

Employers required to register by staging date49 or less people in PAYE scheme

(lower estimate)

Source: The Pensions Regulator, “Automatic enrolment: Staging profile and forecast volumes”, September 2012

<30140,000

Employer help?

Source: www.professionalpensions.com, “NEST warns small employers will not be ‘hand held’”, 30 October 2012

"Our research shows that…employers with as few as one hundred staff - are expecting help from NEST and other providers…the fact is we won't be able to and neither will any other

provider.“

Roy Porter, NEST assistant director, distribution

Getting advice

Source: DWP Research Report No 546 ,‘Employers’ attitudes and likely reactions to the workplace pension reforms 2007”

Auto-enrolment is happening!!

You need to act now

Speak to your Financial Adviser

Any Questions?