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IPT Presentation - Carey Pensions 2015.PDF


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IPT Presentation - Carey Pensions 2015.PDF

  1. 1. Auto-enrolment Graham Peacock - Carey Pensions UK February 2015 Auto-enrolment UK fully Sharia-compliant qualifying workplace pension scheme
  2. 2. Auto-enrolment The Islamic Pension Trust provided by Carey Pensions Providing workplace pensions and auto-enrolment solutions for employers requiring a Sharia compliant proposition for their workers
  3. 3. Auto-enrolment • May 2014 – Islamic Bank of Britain plc (Al Rayan Bank Plc from Dec 2014) announced that it has accredited a fully Sharia compliant auto-enrolment Pension Scheme: the Islamic Pension Trust. • The Islamic Pension Trust was developed by Carey Pensions UK to address the need for a truly Sharia compliant pension scheme which also to meets the criteria for automatic enrolment, as defined by the Government. • This means that employers in the UK can meet their legal obligation to automatically enrol eligible Muslim employees into a qualifying workplace pension scheme, without compromising their religious beliefs. The Islamic Pension Trust
  4. 4. Auto-enrolment Demand for a Sharia-compliant company pension scheme in the UK • Driven by the ongoing implementation of auto-enrolment and the demographics of the Muslim community. • Eligible employees – i.e. those who are not in a company pension scheme, earning more than £10,000 a year (2014/2015) and aged over 22 but under State Pension Age – represent a large proportion of the Muslim population. • IBB’s (Al Rayan Bank Plc from Dec 2014) analysis suggests that 72% of adult Muslims are aged 18-45, compared to 51.5% for the whole of the UK, and 59.1% of British Muslims are in full time employment, compared to 50.3% of the overall UK adult population.
  5. 5. Auto-enrolment Legislation • The automatic enrolment legislation in 2012 presented a dilemma for employers with Muslim workers. • In the absence of a fully Sharia compliant scheme to use for auto- enrolment, complying with the law required enrolling employees in a conventional pension scheme. • As Islamic law prohibits the payment and receipt of interest and promotes profit sharing, Muslims are prevented from investing in some equities and therefore the pension funds that contain them. Whilst shares and dividends are acceptable under Islamic law, speculation is not.
  6. 6. Auto-enrolment Compliance without compromise • The Islamic Pension Trust operates on a master trust basis. • A scheme tailored to the specific requirements of Muslim employees. • Now possible for employers in the UK to enrol their Muslim employees into a workplace pension scheme without compromising their beliefs. • British Muslim employers and charities to provide a fully Sharia compliant workplace pension that meets all of the Government’s criteria for an auto-enrolment scheme. • From 1 May 2014, IBB (Al Rayan Bank Plc in Dec 2014) offered the scheme to its own employees.
  7. 7. Auto-enrolment Investments • Investments accredited as Sharia compliant by Al Rayan Bank Plc. • No income or investment growth is obtained through the payment of interest or unethical business activities prohibited in Islam. • Ongoing compliance of the Islamic Pension Trust is guaranteed through continued audit by Al Rayan Bank’s Sharia Compliance Officer and an independent panel of respected Sharia Scholars, the Sharia Supervisory Committee (SSC).
  8. 8. Auto-enrolment Investments • The Islamic Pension Trust provides investors with access to a series of investment portfolios that are held in a Sharia compliant investment service, called the Discretionary Portfolio Service (DPS). • The DPS is provided by SMARTfund Administration Limited, and accredited as Sharia compliant by Al Rayan Bank Plc. • Unique investment feature for pension structures which are Sharia compliant in the UK. • Portfolios are invested in a range of assets including cash, property, Sharia compliant bonds known as Sukuks, equities and commodities.
  9. 9. Auto-enrolment Carey Pensions • Carey Pensions prides itself on designing high quality pension products that are well run, offer value for money and supports employees with their retirement savings. • Carey Pensions UK, a long-established, specialist pensions administration and trustee company, which offers a range of 5 star Defaqto rated pensions products and has won awards for its customer service provision.
  10. 10. Auto-enrolment EMPLOYEES STAGING DATES 90-159 May 2014 62-89 July 2014 61 August 2014 60 October 2014 59 November 2014 58 January 2015 54-57 March 2015 50-53 April 2015 40-49 August 2015 30-39 October 2015 Fewer than 30 Phased from June 2015
  11. 11. Auto-enrolment Carey Pensions auto-enrolment system Key features • Reduced employer administration costs • Reduced employer administration resource • Provision of own branded auto enrolment portal • Fully functional, fully compliant auto enrolment portal • Full training on auto enrolment portal • Full technical manual • Online access for employers • Online access for employees • Technical support to employers
  12. 12. Auto-enrolment
  13. 13. Auto-enrolment Auto-enrolment System Portal • Specialist auto-enrolment portal team • Training for employers • Assessment of workers Assessment of pension scheme • Enrol eligible jobholders • Opt-in and opt-out, all online • Electronic communications • Reports/outputs: Regulator; Payroll; Providers; Management Information
  14. 14. Auto-enrolment Implementation Process 1 •Completion of Auto-enrolment Order Form, indicating requirements for The Carey Workplace Pension Scheme with or without the Auto-enrolment portal option •Completion of Identity Verification Form •Completion of Employer Authorised Signatory List •Pre-payment of set up charges 2 •Careys create the Deed of Participation (DoP) and Employer agreement •Employer returns original signed copies 3 •Careys register the scheme with HMRC and TPR, coordinate with the investment house and HR/Payroll in order to collect and invest contributions
  15. 15. Auto-enrolment Capacity Compliance DWP: 48% small & 79% micro employers with no pension plan Charge Cap Providers Solutions Options
  16. 16. Auto-enrolment Auto- enrolment Solution •Bespoke Portal •Self serve Option Qualifying Workplace Pension •Master Trust •Default •Investment Options Result •Company Compliance
  17. 17. Auto-enrolment
  18. 18. Auto-enrolment This presentation is intended for regulated financial advisers only and is not suitable for retail clients. All information as of January 2015 unless otherwise stated and is subject to change. Carey Pensions are not recommending any action based on this material. Carey Corporate Pensions UK and Carey Corporate Pension Trustees UK Limited do not provide advice and always recommend that independent professional financial advice is sought prior to making any decision about pension arrangements. Information within this document is based on current understanding of pension rules and regulation which is subject to change in the future. This presentation is the property of Carey Corporate Pensions UK Limited and should not be altered, amended or reproduced without the prior express written consent of Carey Corporate Pensions UK Limited. CONTACT US Enquiries: Tel: 01908 336010