All employers have a duty to ensure that their workforce is assessed for AE, enrolled if they are eligible, and informed of their pension scheme rights and responsibilities.
All employees are entitled to know about AE and what it means for them so that they can make an informed choice as to whether to opt in or out.
Although not every employee will be eligible for enrolment under the current rules, they will still be entitled to opt in to a pension and therefore should be notified of their employer’s chosen scheme.
As an employer your duties with regard to Auto Enrolment are as follows:
- Find and set up a suitable pension scheme, either through your own research or with the help of your accountant or financial adviser
- Assess each individual employee to find out whether they are eligible for AE (this will depend on their age and earnings)
- Write to each member of staff individually, informing them whether or not they meet the criteria for AE and giving details of your chosen pension provider
- Provide your chosen pension provider with details of each employee’s name, address, date of birth and earnings
- Calculate the contributions to be made by you and each member of staff every time you pay them
- Ensure that any changes to employee circumstances, e.g. changes in salary or age bracket, are taken into consideration, making you compliant with AE legislation.
Inaction and mistakes WILL be costly. To save yourself time and avoid additional stress, why not contact PCL for a quote and let us take care of your company’s Auto Enrolment.