A slideshare presentation with the time-scales for auto enrolment in the UK.

1. Timescales for Auto Enrolment
Making sure you are ready for Auto Enrolment

2. Timescales for Auto Enrolment
Auto enrolment is the talk and major bugging issue on almost every employer’s mind right now.
One of the main reason why this is a worry is the issue of cost, which is turning out to be an all expensive affair
contrary to as earlier thought.
Secondly is the issue of timelines, where different employer categories have different timelines to adhere to the
auto enrolment rules.
So, exactly how does this affect the stakeholders?

3. Employer Categorisation
Timescales for Auto Enrolment
All employers, regardless of size have to start complying with the rules starting 2012.
However, deadline for complying for the various employer categories differs
depending on the size.
Large employers are those with employee numbers of over 120,000. On the other
hand, the small employers are those who have less than 50 employees.

4. The Deadlines
Timescales for Auto Enrolment
The largest employees have until 2014 to adhere to the set auto enrolment deadlines.
However, there are some whose deadline comes as early as September 2012 by which
they should have a pension scheme in place.

5. The Deadlines
Timescales for Auto Enrolment
The largest employees have until 2014 to adhere to the set auto enrolment deadlines.
However, there are some whose deadline comes as early as September 2012 by which they
should have a pension scheme in place.
For the smaller employers, their deadline is a bit longer and they have until by 2017 to
comply with the new pension rules.
However for some small employers, the deadline might also come earlier, again this
depending on the size factor.

6. The Implication
Timescales for Auto Enrolment
For the big employers, this presents a circumstance whereby they have to dash for the deadline.
In the process, some might make wrong choices which might turn out to be too costly in the
future.
Already, a number of organizations and employers have decried lack of sufficient information
regarding the cost of available pension schemes in the market.
For the small employers, the main bond of contention is whether to go for the corporate pension
plans or go by what Nest is offering.
The main challenge is that while Nest is low in cost, they have limitations which might lock out
high-earning employees.

7. Eligibility for Employees
Timescales for Auto Enrolment
Despite the set timescales, the other main thing that employers should consider is whether their
employees qualify for the auto enrolment schemes or not. Apparently, the Pensions Act 2008
defines an eligible employee as:
• Employees aged between 22 years and the pension age.
• Only those employees who work in the UK.
• The employees must be in “qualifying bracket” of earnings.
A cross scrutiny at the above guidelines presents another logistics challenge especially for the
employers who have their deadlines maturing soon.

8. Eligibility for Employees
Timescales for Auto Enrolment
Generally, the auto enrolment arrangement is aimed at bettering the overall pensions industry in
the UK.
And in real sense, providing pension to one’s employees is not a profit making venture. The
defined benefits arrangements of pensions are basically driven by that same principle.
So the main question is; why should the defined contributions seem to be like a punishment to the
employee and employer?

9. Eligibility for Employees
Timescales for Auto Enrolment
Further reading and useful links:
• Pensions: auto enrolment for small businesses delayed until 2017 | The Guardian
• Auto-enrolment showcase: Administration will be the big challenge | Employee Benefits
• What Auto Enrolment means to you | Slide Share
• The Impact Of Auto Enrolment | Hub Pages
• NEST Pensions | NEST
• Aon Hewitt Auto Enrolment Guide | Aon
• Auto Enrolment | The Pensions Advisory Service
Have I missed anything in this slide or is there a great link I should include? Drop me a note via Slide Share and I’ll add your link.