auto enrolment november 2011 presentation by: christine ross
TRANSCRIPT
Auto Enrolment
November 2011
Presentation by: Christine Ross
www.sppa.gov.uk
Aims of Presentation
To provide an overview of Auto Enrolment
To highlight roles and responsibilities of:
The Employer The Pensions Regulator DWP SPPA
Auto Enrolment – Case for Reform
The UK faces a major long term challenge• People are living longer and • Some workers not saving for retirement• Everybody should be in a scheme
Auto Enrolment legislation • Pension Commission Report 2005 • Pension Act 2008• Pension Bill 2011• Finance Act 2011
Who does this apply to?
All employees who:• Are aged between 22 yrs and State Pension Age
• Earns (or expected to earn) more than the personal tax allowance (£7,475 in 2011/12)
• Are not members of a “qualifying” pension scheme
When must they be Automatically Enrolled?
• Within 3 months of becoming eligible
• From day one if the member wishes
• Every 3 years (if they have opted out or not joined)
• Look out for members with Protection
Opting Out/Ceasing Active Membership.
• Employees can opt-out at any time
• An opt-out within 1 month leads to member being treated as though they have never joined
Staging Dates
• The staging date depends on employers PAYE number
• January 2013 is the first date known date for an SPPA employer to auto enrol new members
• Employers do not have to enrol existing employees until October 2016 (but must notify them that they can opt in at any time if they wish)
National Employment Savings Trust (NEST)
• NEST only used for employees who do not meet qualifying criteria for the Teachers and NHS schemes
• NEST is intended to complement not replace an existing pension scheme
• Opting out of scheme – members do not have a right to NEST
Roles and Responsibilities (Employers)
It is important that an employees decision to opt out of the scheme is taken freely and without influence by the employer• Automatically enrolling members• Not encouraging them not to join• Not giving advice on opting out• Ensuring that members are aware of the benefits of the scheme
Roles and Responsibilities (Employers)
• Record keeping• New joiners and re joiners• Changes to system• Data• Process for starters, leavers and opt outs• Multiple employments• Opting out of the scheme or a contract
Roles and Responsibilities (DWP)
• Workplace Pension Reforms, Policy and Legislation
• Issuing communications and information to individuals
• Raising awareness and supporting employers
Roles and Responsibilities (TPR)
• Communications and educating employers what they need to do, by when, how they go about it
• Issuing payroll software guidance and interactive tools
• Supporting compliance (including record keeping) and ensuring awareness of non- compliance
Roles and responsibilities (SPPA)
• Regulations
• Considering data implications which will be communicated to employers
• Communicating to employers via:– MAGS, SPG, TWG – issuing circulars – updating web– revising guidance for employers and members
Useful Links
• http://www.thepensionregulator.gov.uk
• http://www.dwp.gov.uk/docs/auto-enrol-and-wpr-the-facts.pdf
• http://www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/
• www.tpr.gov.uk/staging
Things to do
START PLANNING NOW
Scottish Public Pensions Agency
7 Tweedside Park
Galashiels
TD1 3TE
www.sppa.gov.uk
Contact details:[email protected]