The Workplace Pensions Process

Rely on the support of our trusted business consultants throughout your workplace pensions process. Before, during, and after your staging date, our services will help you make sure that you are compliant with all new regulations with regard to your workforce’s pension scheme.

1 - Knowing Your Staging Date

The significance of your staging date cannot be overemphasised. This is the date by which your workplace pension scheme must be active, and also the date from which the time for notification to your employees of their rights with regard to the scheme begins to run. If you fail to establish an active scheme by your staging date then you will be liable to substantial fines, including an immediate fine of £400 plus daily fines ranging from £50 to £2,500 depending on how many employees your business has.

2 - Assessing Your Workforce

There are three different categories of employee when it comes to their rights for automatic enrolment or otherwise. They are

  • Eligible Employees - Aged between 22 and state pension age ("SPA") and earning more than £10,000 pa. These individuals automatically enrol subject to a right to opt out. There will be both an employer and employee contribution.
  • Ineligible Employees - Aged 16 - 21 or SPA - 74 and earn more than £10,000.00 pa OR 16 - 74 and earn more than £5,824 but less than £10,000 pa. These individuals have a right to opt in with both an employer and employee contribution.
  • Entitled Workers - Aged 16 - 74 and earn less than £5,824. These individuals have a right to join. There is no employer contribution for those that earn less than £114/week.

3 - Choosing a Scheme

In order for us to establish which scheme is appropriate for your business, we need to complete the above workforce assessment. However, there are a number of alternatives available to you, including:

  • Government Schemes - Now, Nest, and Peoples' Pension
  • Mainstream Providers - Scottish Widows, Aviva, and Royal Life
  • Master Trusts - Under Which Many Employers Register Their Scheme to Avoid the Excessive Costs of Setting up and Maintaining Your Own Individual Scheme

4 – Communication and Notification

What do you have to inform your employees about, when is this to be undertaken, and how do you do it? There are very strict requirements, and you must inform your employees of:

  • The Chosen Provider, the Staging Date, and Notification of the Scheme
  • The Three-Year Auto Enrolment Cycle
  • The Rights of Other Non-Eligible Employees to Join Your Scheme
  • Their Point of Contact for Any Queries
  • Their Right to Opt-in at Any Date in the Future
  • Their Right to Opt-out Should They Be Eligible for Automatic Enrolment and How They Do This
  • What Happens to Their Contributions Should They Opt-out within Four Weeks of Staging or Later

5 – Data Management - Integration with Payroll

You will need to liaise with whoever is responsible for managing your payroll to ensure that the information provided to the pension regulator and your scheme provider is correct and that the contributions for you as the employer and your employees are correct.

6 – Contributions

7 - Recordkeeping and Ongoing Compliance

You must keep all records for each employee for a minimum of six years and maintain records of all contributions ensuring that they are always available in the event of an audit by the pension regulator.

Contact our business consultants now

to find out more about the workplace pension process and your staging date.

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