Depending on the size of your organisation and what you currently have in place already in regards to a pension scheme, your journey to becoming Auto Enrolment compliant could be a tricky one.
In this week’s edition, we are going to be going through the initial preparation that you will have to do in order to be ready by your staging date.
A great starting point then, in taking on this significant task is to decide who needs to be involved in the initial planning process and share some of the responsibilities.
Some questions you should ask yourself are:
1. Who is going to be communicating the changes to your employees? How and when is this going to happen? A HR representative would be ideal to take on this task.
2. Who will identify an appropriate pension scheme or determine whether your current scheme is compliant? A financial adviser or accountant might be the best point of call for this.
3. Who will identify which workers are eligible for Auto-enrolment and who will manage the opt-out process? Perhaps a payroll representative would take on this task.
4. Are there any technological changes that need to happen? Do you need upgraded payroll software? If you do need new technology, perhaps the IT department, procurement and training staff need to be identified.
5. Who is going to be the key point of contact (and secondary point of contact) to the Pension Regulator? It is important that you advise the Pensions Regulator well in advance. You can do that by clicking on this link.
6. Who is going to take overall responsibility for ensuring timelines are adhered to and all requirements are met? This might also be the person you have nominated as the primary point of contact which could be someone from your finance department.
Obviously if you’re a small organisation that doesn’t have a Finance, HR, IT or Payroll department this could be a really difficult task to undertake but these responsibilities need to be undertaken by someone as failing to be compliant on time can have significant financial implications as we’ve mentioned before.
What’s more, there’s also a need for regular compliance checks once the scheme is underway so if you don’t have expertise internally we would strongly recommend taking on the services of a 3rd party consultant or adviser.
Want to have an unbiased chat around Auto Enrolment?
You can visit our website www.credius.com/our-services/pensions-auto-enrolment/ or you can contact us directly by emailing firstname.lastname@example.org or call on 020 7562 5858 to arrange an appointment.