Auto enrolment: Action you simply must take
New workplace pension regulations come into force in October, heralding the most significant changes to the pension sector in many years. Dave Gleeson, financial planning consultant at Moore and Smalley, identifies the minimum action employers must take.
It will not be possible for any business to ignore the new regulations. They are not going to go away and if you fail to properly prepare, your business could suffer severe financial and reputational damage.
At the very least, employers should find out exactly when their staging date will be so they can begin to consider the impact the additional costs will have on their business.
Even if your staging date is a few years away, you should start incorporating your statutory duties into any long term operational plans or financial projections.
It may be possible to use the existing pension arrangement you already have for your employees, but this depends on the type of scheme. Some existing arrangements can be adapted to meet the criteria for a qualifying pension arrangement. However, this is not certain and professional advice should be sought if this is a route you are considering.
Any existing arrangement should be reviewed well ahead of your staging date so you can take the appropriate action to change your existing scheme, or identify and implement an alternative arrangement.
If you would like more information on auto-enrolment pensions, please contact Dave Gleeson on 01772 821021.