Presentation slides from a webinar which took place on 19 July 2016. Watch the webinar: https://www.youtube.com/watch?v=0-RMtDWLKh4&feature=youtu.be

1. PENSIONS AUTO ENROLMENT:
UNDERSTANDING YOUR
RESPONSIBILITIES
19 JULY 2016

2. INTRODUCTIONS
• Andrew Campbell
Employee Benefits Manager, Lucas Fettes
• Emma Welling
Employee Benefits Manager, Lucas Fettes

3. AUTOMATIC ENROLMENT (AE)
3
Background and
the story so far
Overview of AE
duties and key
employer
decisions
AE in practice
and managing
employer duties
Questions and
answers

4. INTRODUCTION AND BACKGROUND
4
Flat rate state
pension
Increased state
retirement age
Diminishing final
salary scheme
Removal of
default
Retirement Age
State Pension time bomb

5. THE STORY SO FAR
5
Period Ending Completed declaration
of compliance
Workers enrolled
March 2013 84 308,000
March 2014 10,817 3,200,000
March 2015 45,820 5,200,000
March 2016 110,103 6,100,000

6. REMAINING STAGING DATE TIMETABLE
6
Employer Size Quarter (Financial Year) Forecast Volumes
Small and micro
employers
Q1 2016/2017 101,000
Q2 2016/2017 133,000
Q3 2016/2017 168,000
Q4 2016/2017 215,000
New employers
Q1 2017/2018 178,000
Q2 2017/2018 137,000
Q3 2017/2018 131,000
Q4 2017/2018 87,000

7. FAILURE TO COMPLY
7
Initial Fixed Penalty £400
Number of people in PAYE Scheme Daily accrual rate
1 – 4 £50
5 – 49 £500
50 – 249 £2,500
250 – 499 £5,000
500 or more £10,000

8. PLANNING AHEAD OF YOUR STAGING DATE
- CHOOSING A PENSION SUPPLIER
8
• Check existing arrangements
• Identify if you need to establish a new workplace pension scheme
• Decide if you will undertake a market review
• Will you seek advice
• Implement your scheme

9. PLANNING AHEAD OF YOUR STAGING DATE
– PENSION FUNDING
9
Employer Pays Employee Pays* Total
Up to 5th April 2018 1% 1% 2%
From 6th April 2018 to 5th April 2019 2% 3% 5%
From 6th April 2019 3% 5% 8%
Minimum contribution requirements
Based on ‘Qualifying Earnings’ (total earnings between £5,824 and £43,000)
I*inclusive of tax relief

10. 10
• Pensionable earnings:
- Set 1 basic pay
- Set 2 basic pay where it represents 85% of total pay
- Set 3 total pay
Employer Pays Employee Pays Total
Set 1 4% 5% 9%
Set 2 3% 5% 8%
Set 3 3% 4% 7%
PLANNING AHEAD OF YOUR STAGING DATE
– PENSION FUNDING

11. PLANNING AHEAD OF YOUR STAGING DATE
– AUTO ENROLMENT COMPLIANCE
11
• Where will this be carried out?
- Payroll
- Pension Supplier
- 3rd Party
- HMRC Basic PAYE tool

12. PLANNING AHEAD OF YOUR STAGING DATE
– HR AND STAFF COMMUNICATIONS
12
• Communicate decisions made to existing staff
- Optional pre–staging date announcement
- Staff Presentations
- Webinars
- Posters
- Payslip Inserts
• Consider how and when you communicate with new employees
• Review contracts of employment

13. AT YOUR STAGING DATE
- WORKER ASSESSMENTS
13
Staff type Age band Earnings Enrolment Duty
Employer
Contributions
Eligible
jobholders
22 – SPA*
£10,000+
Must be
automatically
enrolled
Yes
Non-eligible
jobholders
16 – 21 or
SPA – 74 £10,000+
Have a right to opt in
Yes
16 – 74 Above £5,824 but
below £10,000
Entitled workers 16 - 74 Up to £5,824 Have a right to join No
*SPA – State Pension Age

14. 14
• Assessments will need to be conducted each pay period
• Recorded and evidenced
• Correct contributions deducted
• Pension reports sent to pension supplier
• Statutory communications sent to workers
AT YOUR STAGING DATE
- INITIAL COMPLIANCE DUTIES

15. AT YOUR STAGING DATE
- COMMUNICATIONS TO WORKERS
15
• Statutory assessment outcome communications
- Enrolment notice
- General notice
- Postponement notice
• Enrolment pack from pension supplier with opt-out instructions

16. POST STAGING DATE
– ONGOING EMPLOYER DUTIES
16
• Completion of your declaration of compliance
• Delivery of new joiner process
• Managing opt-in and opt-out requests
Communications will need to be issued when:
- New employees join the payroll
- Employees on the payroll turn 22 and become eligible
- Employees whose earnings increase due to a pay spike

17. POST STAGING DATE
- FUTURE GOVERNANCE AND OVERSIGHT
17
• Annual review of the pension scheme
• Re-enrolment
• Triennial Declaration of Compliance

18. 18
Background and
the story so far
Overview of AE
duties and key
employer
decisions
AE in practice
and managing
employer duties
Questions and
answers
SUMMARY

19. WHERE CAN YOU GET MORE INFORMATION
19
Lucas Fettes auto-enrolment helpline – 0345 357 8910
http://www.easyasae.co.uk

20. Andrew Campbell
Andrew.Campbell@lucasfettes.co.uk
Emma Welling
Emma.Welling@lucasfettes.co.uk