Mitten, director of Enrolsme looks at the options when it comes to complying
with the automatic enrolment legislation.
The Regulator has spoken. Last month it stated
in marketing communications that it 'will be writing to over 95,000 small and
micro employers with less than six months to go until their staging date to
tell them it’s time to choose a pension scheme'.
Time is ticking, and many (although sadly not
all), will be putting their plans in place to make sure they comply with the
legislation. There are a number of options open to them. NEST, the workplace pension established by the government,
is one of them. It is free for employers and easy to set up, and we are seeing
large numbers of small businesses
choosing this route. However, be aware that the less something costs the more
there is for the employer to do. Automatic enrolment is not just about choosing
a pension. I worry that people selecting,
say NEST and other ‘free’ schemes, think that they’ve done chosen their pension
and they are compliant. But for some, without
the correct level of guidance and support they could end up falling foul of the
Equally, employers may fail to
recognise there are other options available to them. I'd expect they see NEST
as doing the complete job - taking care of all reporting, administration and
employee communication. Sadly that isn't the case - support levels are minimal for the employer.
NEST won't advise on the
ongoing reporting that employers are required to do, and they won't assist with
payroll activity. Currently it provides minimal telephone support, and there is
concern over resourcing as increasing numbers of employers reach their staging
dates this year. NEST describes itself as a digital pension provider; it
prefers not to talk to people, but to deal with everything online. This is
understandable as they have to cope with huge volumes of inbound activity, but the
experience some customers will receive may not be what they were hoping for.
This is a critical
time for employers and they need more than just a pension wrapper. They need
support and guidance and to make sure they are meeting their automatic enrolment
obligations in the best way possible. It is important that businesses ensure
they look after and support their staff, and their business, and for these
reasons they need to make the right decisions when it comes to selecting their
pension scheme and support needed.
Some employers will want
access to guidance with their auto-enrolment journey but may not know where to
go to and who to talk to. Yet there are
a number of companies out there who can help – but employers will have to be
prepared to pay a fee for this support.
And if it brings peace of mind and step-by-step help for them, it is, in
my opinion, a price worth paying.
Enrolsme (www.enrolsme.com) provides a three-step
guided process, giving businesses comprehensive guidance on how to design and
set up a workplace pension scheme; ensuring they meet their obligations and
providing all the payroll processes they need to follow.
partnered with Standard Life and The People's Pension to ensure we are offering
customers a genuine choice whilst not compromising on quality.
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Foster Denovo Enrolsme Ltd is an appointed representative of Foster Denovo Ltd
Enrolsme is a non-advised process and other options are available which may be better suited to a small business. They may be more complex and they are not offered under this solution. Small businesses who want to explore these options may wish to contact a financial advise