What you as the Employer needs to do:
Have you received your letter 18 months before the staging date from the Pensions Regulator? If not contact them as they will have the wrong address for you. Also you should receive one 6 months and 3 months before your staging date.
You must register with the Pensions Regulator within four months of your staging date and let them know who to deal with in your firm, link to help you below.
Registration is to formally tell the regulator how you have dealt with auto enrolment, nominating a contact in the business is an earlier job if you havenâ€™t heard from the regulator it is done on this link:
Decide who is going to be in charge of the project, you will need as the business owner to take some key decisions as well as someone to implement them.
You must have a pension scheme set up ready for your staging date. Speak to your IFA as soon as possible. If you do have a pension scheme already make sure you review the current scheme and check that it is qualifying, and if they will take on new members.
You need to check with the provider that they will keep adequate records as we will not be holding any additional records.
You need to check if any specific data is needed by the pension provider i.e. â€“ email address etcâ€¦
What is included in pensionable pay i.e. basic pay/overtime etc. and at what percentage? This is very important and ASR must be told 2 months before your staging date.
Inform us what your employees qualifying earnings are i.e. are certain expenses included?
Otherwise we will put all gross payment in to the qualifying earnings for pension.
You must inform us who you donâ€™t want in the eligible jobholders category and postpone i.e. seasonal workers, BEFORE we close down the payroll that month.
You can postpone for up to 3 months, you can do this every time they are auto enrolled and a letter will go out to the employee. As long as on the postponement date when we reassess them they arenâ€™t eligible if they are then you have no option but to put them in a scheme so choose a postponement date within three months when you donâ€™t expect to be paying them anything over the tax threshold.
You need to inform us as employees become eligible as we will continue this process every payroll and provide letters each month.
We shall be doing the assessment as part of the payroll run but you need to tell us about the pension scheme you would choose for a new starter if they become eligible
Tell us who wants to opt-in voluntarily on your regular payroll input and the scheme they want to join and we will set that up for the next payroll run.
Tell us about anyone who wants to leave the pension scheme but has missed the six week opt-out deadline â€“ they wonâ€™t get a refund but weâ€™ll stop contributions in the next payroll run.
If employees who are in the entitled workers or non-eligible categories and choose to opt in we must be told before the next payroll is run.
As the Employer you have to give out letters promptly or employees will see the deduction on payslip without explanation. ASR shall send with the payslips.
Employees who have been auto-enrolled can opt-out and get their money back. They have six weeks to do that and the deadline and who to contact at the pension provider will be on their letter. It is illegal to opt-out in advance.
We need to know if an employee has opted out from the scheme, so we can then refund on next months payroll.
You need to inform ASR if your pension provider needs us to send an electronic interface to them. We should be able to supply this, given the correct format and time to make sure this works between ASR & your pension provider. This does incur and extra cost on top of the pension administration cost already in place from your staging date.
Give ASR all information by the deadline which is 2 months before your staging date.
What we at ASR will help you with:
ASR will assess all your employees. Assessing employees allows us to tell you what you have to offer them in terms of a pension on your staging date.
After that run, which may be slightly earlier than your normal deadline date, we will provide you with one of four letters to give to your employees:
- A letter for anyone already in a pension scheme that you run
- A letter for those who have been auto-enrolled
- A letter for those who can opt-in to a pension scheme
- A letter for those low paid or young workers who can opt-in to a pension scheme but who wonâ€™t receive employer contributions.
Your deadline is set to give us all information needed 2 months before your staging date (on cover letter).
We will send a monthly report to you with the amount that needs to be paid to the pension provider.
We will keep all records of what we have processed for 6 years.
We shall supply electronic interface with your pension provider if required.
Staging date is based on head count in March 2012.
All employees will be assessed into the 3 brackets below:
(Eligible Jobholders) – Age 22 to state pension age/Qualifying earnings over tax threshold.
(Non Eligible Jobholders) – Age 16-74 earning more than NICs threshold and at or below tax threshold/age 16-21 or state pension age to 74 earning more than tax threshold.
(Entitled Workers) – Age 16-74 earnings at or below NICs threshold.
Single Directors are excluded from auto enrolment unless they employ someone so if wife/family member on the scheme you have to offer pension.
Employees who choose to opt out will be refunded.
No refunds are to be given to employees who chose to just stop or cease their pension membership and not opt out