This document discusses the importance of auditing an auto-enrollment pension scheme for compliance. It outlines four key areas that should be audited: the auto-enrollment scheme itself, communication processes, assessment and contribution processes, and scheme certification. The audit should ensure the scheme meets all regulatory requirements, proper documentation is maintained, and contributions are being correctly deducted and allocated. Regular audits are important to identify any issues and ensure ongoing compliance.

1. How to…audit your auto-
enrolment scheme
compliance
Tasha Hartley
Service Consultant
9th October 2014

2. Topics
• The importance of a scheme and process audit
• The four key areas –
• Auto-enrolment scheme
• Communication processes
• Assessment and contribution processes
• Scheme certification
• Wider scheme governance
• Questions

3. Why do I need to audit my scheme?
23
Auto-enrolment
compliance notices
Warnings
of more to
come!
5
inspection of
premises/demands
for documentation
Assessment
and
contributions
Communication
processes
Auto-
enrolment
scheme
Scheme
certification

4. Auditing your…auto-enrolment scheme
• Is your scheme free from….
- barriers to entry?
- requirements to provide information?
- active member discount pricing?
- member borne commission?
• Does your scheme meet…
- minimum requirements for its pension scheme type?
- the 0.75% charge cap?
• Have you maintained…
- all required documentation for the required period of time?
• Does your scheme provide…
- access to a default investment option?

5. Auditing your…communication processes
• Correct communications to the correct people
- Audit record
• Wording
- Regulated information
- Inducement free
- Accurate and up to date
• Timing
- Delivered on time
- New joiner notification

6. Auditing your…assessment and contribution processes
• Assessment
- Has every one who needs to be assessed been
assessed?
- LLP’s, temporary staff, self-employed
• Contributions
- Meet minimum requirements
- Correct deductions
- Application of refunds
- Fund allocation – 22nd of the month
- Salary sacrifice application

7. Auditing your…scheme certification
• Separate certification
- Employee groups
- Individual schemes
• Audit
- Before staging date
- Where’s the certificate?
• Re-certification
- Every 18 months
- Significant change

8. Wider scheme governance
Contributions DecumulationInvestments
Protection of
assets
Value for
money
Administration

9. Summary
• Not whether you breach, but how you rectify it
• Represents best practice
• Now is the time to act
Tel - 01527 571 300
E-mail - info@johnsonfleming.com
Guide - www.johnsonfleming.com/guide/9

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